Correlation Between Repligen and Connecticut Light
Can any of the company-specific risk be diversified away by investing in both Repligen and Connecticut Light 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 Connecticut Light into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Repligen and The Connecticut Light, you can compare the effects of market volatilities on Repligen and Connecticut Light 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 Connecticut Light. Check out your portfolio center. Please also check ongoing floating volatility patterns of Repligen and Connecticut Light.
Diversification Opportunities for Repligen and Connecticut Light
-0.06 | Correlation Coefficient |
Good diversification
The 3 months correlation between Repligen and Connecticut is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding Repligen and The Connecticut Light in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Connecticut Light 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 Connecticut Light. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Connecticut Light has no effect on the direction of Repligen i.e., Repligen and Connecticut Light go up and down completely randomly.
Pair Corralation between Repligen and Connecticut Light
Given the investment horizon of 90 days Repligen is expected to generate 2.35 times more return on investment than Connecticut Light. However, Repligen is 2.35 times more volatile than The Connecticut Light. It trades about 0.05 of its potential returns per unit of risk. The Connecticut Light is currently generating about 0.02 per unit of risk. If you would invest 14,193 in Repligen on September 12, 2024 and sell it today you would earn a total of 1,001 from holding Repligen or generate 7.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 98.44% |
| Values | Daily Returns |
Repligen vs. The Connecticut Light
Performance |
| Timeline |
| Repligen |
| Connecticut Light |
Repligen and Connecticut Light Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Repligen and Connecticut Light
The main advantage of trading using opposite Repligen and Connecticut Light positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Repligen position performs unexpectedly, Connecticut Light 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 Connecticut Light will offset losses from the drop in Connecticut Light's long position.| Repligen vs. Intuitive Surgical | Repligen vs. ResMed Inc | Repligen vs. Merit Medical Systems | Repligen vs. ICU Medical |
| Connecticut Light vs. LGI Homes | Connecticut Light vs. Delek Logistics Partners | Connecticut Light vs. JBG SMITH Properties | Connecticut Light vs. JD Sports Fashion |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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