Correlation Between Repligen and Femasys
Can any of the company-specific risk be diversified away by investing in both Repligen and Femasys 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 Femasys into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Repligen and Femasys, you can compare the effects of market volatilities on Repligen and Femasys 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 Femasys. Check out your portfolio center. Please also check ongoing floating volatility patterns of Repligen and Femasys.
Diversification Opportunities for Repligen and Femasys
Modest diversification
The 3 months correlation between Repligen and Femasys is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding Repligen and Femasys in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Femasys 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 Femasys. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Femasys has no effect on the direction of Repligen i.e., Repligen and Femasys go up and down completely randomly.
Pair Corralation between Repligen and Femasys
Given the investment horizon of 90 days Repligen is expected to under-perform the Femasys. But the stock apears to be less risky and, when comparing its historical volatility, Repligen is 1.88 times less risky than Femasys. The stock trades about -0.02 of its potential returns per unit of risk. The Femasys is currently generating about 0.38 of returns per unit of risk over similar time horizon. If you would invest 109.00 in Femasys on November 27, 2024 and sell it today you would earn a total of 53.00 from holding Femasys or generate 48.62% 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. Femasys
Performance |
| Timeline |
| Repligen |
| Femasys |
Repligen and Femasys Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Repligen and Femasys
The main advantage of trading using opposite Repligen and Femasys positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Repligen position performs unexpectedly, Femasys 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 Femasys will offset losses from the drop in Femasys' long position.| Repligen vs. Intuitive Surgical | Repligen vs. ResMed Inc | Repligen vs. Merit Medical Systems | Repligen vs. ICU Medical |
| Femasys vs. Precision Optics, | Femasys vs. Repro Med Systems | Femasys vs. InfuSystems Holdings | Femasys vs. Utah Medical Products |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
Other Complementary Tools
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance |