Correlation Between Repligen and Ardelyx
Can any of the company-specific risk be diversified away by investing in both Repligen and Ardelyx 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 Ardelyx into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Repligen and Ardelyx, you can compare the effects of market volatilities on Repligen and Ardelyx 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 Ardelyx. Check out your portfolio center. Please also check ongoing floating volatility patterns of Repligen and Ardelyx.
Diversification Opportunities for Repligen and Ardelyx
Modest diversification
The 3 months correlation between Repligen and Ardelyx is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding Repligen and Ardelyx in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ardelyx 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 Ardelyx. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ardelyx has no effect on the direction of Repligen i.e., Repligen and Ardelyx go up and down completely randomly.
Pair Corralation between Repligen and Ardelyx
Given the investment horizon of 90 days Repligen is expected to generate 177.89 times less return on investment than Ardelyx. But when comparing it to its historical volatility, Repligen is 1.65 times less risky than Ardelyx. It trades about 0.0 of its potential returns per unit of risk. Ardelyx is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 186.00 in Ardelyx on August 26, 2024 and sell it today you would earn a total of 345.00 from holding Ardelyx or generate 185.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Repligen vs. Ardelyx
Performance |
| Timeline |
| Repligen |
| Ardelyx |
Repligen and Ardelyx Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Repligen and Ardelyx
The main advantage of trading using opposite Repligen and Ardelyx positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Repligen position performs unexpectedly, Ardelyx 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 Ardelyx will offset losses from the drop in Ardelyx's long position.| Repligen vs. Fonar | Repligen vs. Burning Rock Biotech | Repligen vs. Sera Prognostics | Repligen vs. Exagen Inc |
| Ardelyx vs. Eliem Therapeutics | Ardelyx vs. HCW Biologics | Ardelyx vs. Scpharmaceuticals | Ardelyx vs. Milestone Pharmaceuticals |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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