Correlation Between Repligen and Banc Of
Can any of the company-specific risk be diversified away by investing in both Repligen and Banc Of 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 Banc Of into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Repligen and Banc of California, you can compare the effects of market volatilities on Repligen and Banc Of 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 Banc Of. Check out your portfolio center. Please also check ongoing floating volatility patterns of Repligen and Banc Of.
Diversification Opportunities for Repligen and Banc Of
Average diversification
The 3 months correlation between Repligen and Banc is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding Repligen and Banc of California in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Banc of California 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 Banc Of. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Banc of California has no effect on the direction of Repligen i.e., Repligen and Banc Of go up and down completely randomly.
Pair Corralation between Repligen and Banc Of
Given the investment horizon of 90 days Repligen is expected to generate 14.17 times less return on investment than Banc Of. But when comparing it to its historical volatility, Repligen is 1.42 times less risky than Banc Of. It trades about 0.0 of its potential returns per unit of risk. Banc of California is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 1,458 in Banc of California on September 3, 2024 and sell it today you would earn a total of 1,042 from holding Banc of California or generate 71.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Repligen vs. Banc of California
Performance |
| Timeline |
| Repligen |
| Banc of California |
Repligen and Banc Of Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Repligen and Banc Of
The main advantage of trading using opposite Repligen and Banc Of positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Repligen position performs unexpectedly, Banc Of 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 Banc Of will offset losses from the drop in Banc Of's long position.| Repligen vs. Intuitive Surgical | Repligen vs. ResMed Inc | Repligen vs. Merit Medical Systems | Repligen vs. ICU Medical |
| Banc Of vs. Bausch Lomb Corp | Banc Of vs. Franklin Wireless Corp | Banc Of vs. Sensient Technologies | Banc Of vs. Repligen |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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