Correlation Between Repligen and Appian Corp
Can any of the company-specific risk be diversified away by investing in both Repligen and Appian Corp 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 Appian Corp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Repligen and Appian Corp, you can compare the effects of market volatilities on Repligen and Appian Corp 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 Appian Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Repligen and Appian Corp.
Diversification Opportunities for Repligen and Appian Corp
-0.12 | Correlation Coefficient |
Good diversification
The 3 months correlation between Repligen and Appian is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding Repligen and Appian Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Appian Corp 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 Appian Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Appian Corp has no effect on the direction of Repligen i.e., Repligen and Appian Corp go up and down completely randomly.
Pair Corralation between Repligen and Appian Corp
Given the investment horizon of 90 days Repligen is expected to generate 1.82 times less return on investment than Appian Corp. In addition to that, Repligen is 1.47 times more volatile than Appian Corp. It trades about 0.09 of its total potential returns per unit of risk. Appian Corp is currently generating about 0.24 per unit of volatility. If you would invest 3,338 in Appian Corp on August 28, 2024 and sell it today you would earn a total of 497.00 from holding Appian Corp or generate 14.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Repligen vs. Appian Corp
Performance |
| Timeline |
| Repligen |
| Appian Corp |
Repligen and Appian Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Repligen and Appian Corp
The main advantage of trading using opposite Repligen and Appian Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Repligen position performs unexpectedly, Appian Corp 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 Appian Corp will offset losses from the drop in Appian Corp's long position.| Repligen vs. Intuitive Surgical | Repligen vs. ResMed Inc | Repligen vs. Merit Medical Systems | Repligen vs. ICU Medical |
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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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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