Correlation Between Repro Med and ICU Medical
Can any of the company-specific risk be diversified away by investing in both Repro Med and ICU Medical at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Repro Med and ICU Medical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Repro Med Systems and ICU Medical, you can compare the effects of market volatilities on Repro Med and ICU Medical and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Repro Med with a short position of ICU Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Repro Med and ICU Medical.
Diversification Opportunities for Repro Med and ICU Medical
0.16 | Correlation Coefficient |
Average diversification
The 3 months correlation between Repro and ICU is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding Repro Med Systems and ICU Medical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ICU Medical and Repro Med is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Repro Med Systems are associated (or correlated) with ICU Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ICU Medical has no effect on the direction of Repro Med i.e., Repro Med and ICU Medical go up and down completely randomly.
Pair Corralation between Repro Med and ICU Medical
Given the investment horizon of 90 days Repro Med Systems is expected to generate 3.15 times more return on investment than ICU Medical. However, Repro Med is 3.15 times more volatile than ICU Medical. It trades about 0.4 of its potential returns per unit of risk. ICU Medical is currently generating about -0.16 per unit of risk. If you would invest 249.00 in Repro Med Systems on August 24, 2024 and sell it today you would earn a total of 109.00 from holding Repro Med Systems or generate 43.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Repro Med Systems vs. ICU Medical
Performance |
| Timeline |
| Repro Med Systems |
| ICU Medical |
Repro Med and ICU Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Repro Med and ICU Medical
The main advantage of trading using opposite Repro Med and ICU Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Repro Med position performs unexpectedly, ICU Medical can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in ICU Medical will offset losses from the drop in ICU Medical's long position.| Repro Med vs. Precision Optics, | Repro Med vs. InfuSystems Holdings | Repro Med vs. Utah Medical Products | Repro Med vs. Milestone Scientific |
| ICU Medical vs. Merit Medical Systems | ICU Medical vs. The Cooper Companies, | ICU Medical vs. AngioDynamics | ICU Medical vs. AptarGroup |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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