Correlation Between MagnaChip Semiconductor and Repligen
Can any of the company-specific risk be diversified away by investing in both MagnaChip Semiconductor 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 MagnaChip Semiconductor and Repligen into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MagnaChip Semiconductor and Repligen, you can compare the effects of market volatilities on MagnaChip Semiconductor 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 MagnaChip Semiconductor with a short position of Repligen. Check out your portfolio center. Please also check ongoing floating volatility patterns of MagnaChip Semiconductor and Repligen.
Diversification Opportunities for MagnaChip Semiconductor and Repligen
0.16 | Correlation Coefficient |
Average diversification
The 3 months correlation between MagnaChip and Repligen is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding MagnaChip Semiconductor and Repligen in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Repligen and MagnaChip Semiconductor 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 MagnaChip Semiconductor 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 MagnaChip Semiconductor i.e., MagnaChip Semiconductor and Repligen go up and down completely randomly.
Pair Corralation between MagnaChip Semiconductor and Repligen
Allowing for the 90-day total investment horizon MagnaChip Semiconductor is expected to under-perform the Repligen. But the stock apears to be less risky and, when comparing its historical volatility, MagnaChip Semiconductor is 1.3 times less risky than Repligen. The stock trades about -0.05 of its potential returns per unit of risk. The Repligen is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 17,742 in Repligen on September 4, 2024 and sell it today you would lose (2,696) from holding Repligen or give up 15.2% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
MagnaChip Semiconductor vs. Repligen
Performance |
| Timeline |
| MagnaChip Semiconductor |
| Repligen |
MagnaChip Semiconductor and Repligen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MagnaChip Semiconductor and Repligen
The main advantage of trading using opposite MagnaChip Semiconductor and Repligen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MagnaChip Semiconductor 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.| MagnaChip Semiconductor vs. CEVA Inc | MagnaChip Semiconductor vs. MACOM Technology Solutions | MagnaChip Semiconductor vs. FormFactor | MagnaChip Semiconductor vs. MaxLinear |
| 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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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