Correlation Between Repligen and Acumen Pharmaceuticals
Can any of the company-specific risk be diversified away by investing in both Repligen and Acumen Pharmaceuticals 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 Repligen and Acumen Pharmaceuticals into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Repligen and Acumen Pharmaceuticals, you can compare the effects of market volatilities on Repligen and Acumen Pharmaceuticals 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 Repligen with a short position of Acumen Pharmaceuticals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Repligen and Acumen Pharmaceuticals.
Diversification Opportunities for Repligen and Acumen Pharmaceuticals
0.04 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Repligen and Acumen is 0.04. Overlapping area represents the amount of risk that can be diversified away by holding Repligen and Acumen Pharmaceuticals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Acumen Pharmaceuticals and Repligen 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 Repligen are associated (or correlated) with Acumen Pharmaceuticals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Acumen Pharmaceuticals has no effect on the direction of Repligen i.e., Repligen and Acumen Pharmaceuticals go up and down completely randomly.
Pair Corralation between Repligen and Acumen Pharmaceuticals
Given the investment horizon of 90 days Repligen is expected to generate 0.77 times more return on investment than Acumen Pharmaceuticals. However, Repligen is 1.3 times less risky than Acumen Pharmaceuticals. It trades about 0.11 of its potential returns per unit of risk. Acumen Pharmaceuticals is currently generating about -0.2 per unit of risk. If you would invest 13,953 in Repligen on September 3, 2024 and sell it today you would earn a total of 1,101 from holding Repligen or generate 7.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Repligen vs. Acumen Pharmaceuticals
Performance |
| Timeline |
| Repligen |
| Acumen Pharmaceuticals |
Repligen and Acumen Pharmaceuticals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Repligen and Acumen Pharmaceuticals
The main advantage of trading using opposite Repligen and Acumen Pharmaceuticals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Repligen position performs unexpectedly, Acumen Pharmaceuticals 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 Acumen Pharmaceuticals will offset losses from the drop in Acumen Pharmaceuticals' long position.| Repligen vs. Intuitive Surgical | Repligen vs. ResMed Inc | Repligen vs. Merit Medical Systems | Repligen vs. ICU Medical |
| Acumen Pharmaceuticals vs. DiaMedica Therapeutics | Acumen Pharmaceuticals vs. Lyra Therapeutics | Acumen Pharmaceuticals vs. Centessa Pharmaceuticals PLC |
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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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