Correlation Between Repligen and HUTCHMED DRC
Can any of the company-specific risk be diversified away by investing in both Repligen and HUTCHMED DRC 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 HUTCHMED DRC into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Repligen and HUTCHMED DRC, you can compare the effects of market volatilities on Repligen and HUTCHMED DRC 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 HUTCHMED DRC. Check out your portfolio center. Please also check ongoing floating volatility patterns of Repligen and HUTCHMED DRC.
Diversification Opportunities for Repligen and HUTCHMED DRC
-0.11 | Correlation Coefficient |
Good diversification
The 3 months correlation between Repligen and HUTCHMED is -0.11. Overlapping area represents the amount of risk that can be diversified away by holding Repligen and HUTCHMED DRC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HUTCHMED DRC 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 HUTCHMED DRC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HUTCHMED DRC has no effect on the direction of Repligen i.e., Repligen and HUTCHMED DRC go up and down completely randomly.
Pair Corralation between Repligen and HUTCHMED DRC
Given the investment horizon of 90 days Repligen is expected to generate 1.52 times more return on investment than HUTCHMED DRC. However, Repligen is 1.52 times more volatile than HUTCHMED DRC. It trades about 0.09 of its potential returns per unit of risk. HUTCHMED DRC is currently generating about -0.27 per unit of risk. If you would invest 13,721 in Repligen on August 28, 2024 and sell it today you would earn a total of 885.00 from holding Repligen or generate 6.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Repligen vs. HUTCHMED DRC
Performance |
| Timeline |
| Repligen |
| HUTCHMED DRC |
Repligen and HUTCHMED DRC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Repligen and HUTCHMED DRC
The main advantage of trading using opposite Repligen and HUTCHMED DRC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Repligen position performs unexpectedly, HUTCHMED DRC 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 HUTCHMED DRC will offset losses from the drop in HUTCHMED DRC's long position.| Repligen vs. Intuitive Surgical | Repligen vs. ResMed Inc | Repligen vs. Merit Medical Systems | Repligen vs. ICU Medical |
| HUTCHMED DRC vs. Capricor Therapeutics | HUTCHMED DRC vs. Soleno Therapeutics | HUTCHMED DRC vs. Bio Path Holdings | HUTCHMED DRC vs. Moleculin Biotech |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
Other Complementary Tools
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like |