Correlation Between Playtech Plc and Repligen
Can any of the company-specific risk be diversified away by investing in both Playtech Plc 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 Playtech Plc and Repligen into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Playtech plc and Repligen, you can compare the effects of market volatilities on Playtech Plc 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 Playtech Plc with a short position of Repligen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Playtech Plc and Repligen.
Diversification Opportunities for Playtech Plc and Repligen
-0.2 | Correlation Coefficient |
Good diversification
The 3 months correlation between Playtech and Repligen is -0.2. Overlapping area represents the amount of risk that can be diversified away by holding Playtech plc and Repligen in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Repligen and Playtech Plc 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 Playtech plc 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 Playtech Plc i.e., Playtech Plc and Repligen go up and down completely randomly.
Pair Corralation between Playtech Plc and Repligen
If you would invest 13,721 in Repligen on August 29, 2024 and sell it today you would earn a total of 1,138 from holding Repligen or generate 8.3% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Playtech plc vs. Repligen
Performance |
| Timeline |
| Playtech plc |
| Repligen |
Playtech Plc and Repligen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Playtech Plc and Repligen
The main advantage of trading using opposite Playtech Plc and Repligen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Playtech Plc 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.| Playtech Plc vs. Light Wonder | Playtech Plc vs. Nasdaq Inc | Playtech Plc vs. Vertiv Holdings Co | Playtech Plc vs. IONQ Inc |
| 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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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