Correlation Between Lucas GC and Repligen
Can any of the company-specific risk be diversified away by investing in both Lucas GC and Repligen 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 Lucas GC and Repligen into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lucas GC Limited and Repligen, you can compare the effects of market volatilities on Lucas GC and Repligen 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 Lucas GC with a short position of Repligen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lucas GC and Repligen.
Diversification Opportunities for Lucas GC and Repligen
Significant diversification
The 3 months correlation between Lucas and Repligen is 0.09. Overlapping area represents the amount of risk that can be diversified away by holding Lucas GC Limited and Repligen in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Repligen and Lucas GC 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 Lucas GC Limited are associated (or correlated) with Repligen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Repligen has no effect on the direction of Lucas GC i.e., Lucas GC and Repligen go up and down completely randomly.
Pair Corralation between Lucas GC and Repligen
Given the investment horizon of 90 days Lucas GC Limited is expected to generate 3.3 times more return on investment than Repligen. However, Lucas GC is 3.3 times more volatile than Repligen. It trades about 0.0 of its potential returns per unit of risk. Repligen is currently generating about -0.02 per unit of risk. If you would invest 58.00 in Lucas GC Limited on November 27, 2024 and sell it today you would lose (4.00) from holding Lucas GC Limited or give up 6.9% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lucas GC Limited vs. Repligen
Performance |
| Timeline |
| Lucas GC Limited |
| Repligen |
Lucas GC and Repligen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lucas GC and Repligen
The main advantage of trading using opposite Lucas GC and Repligen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lucas GC position performs unexpectedly, Repligen 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 Repligen will offset losses from the drop in Repligen's long position.| Lucas GC vs. Air Lease | Lucas GC vs. Mesa Air Group | Lucas GC vs. Rocky Brands | Lucas GC vs. InfuSystems Holdings |
| Repligen vs. Intuitive Surgical | Repligen vs. ResMed Inc | Repligen vs. Merit Medical Systems | Repligen vs. ICU Medical |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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