Correlation Between Repligen and HubSpot
Can any of the company-specific risk be diversified away by investing in both Repligen and HubSpot 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 HubSpot into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Repligen and HubSpot, you can compare the effects of market volatilities on Repligen and HubSpot 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 HubSpot. Check out your portfolio center. Please also check ongoing floating volatility patterns of Repligen and HubSpot.
Diversification Opportunities for Repligen and HubSpot
Very good diversification
The 3 months correlation between Repligen and HubSpot is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding Repligen and HubSpot in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HubSpot 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 HubSpot. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HubSpot has no effect on the direction of Repligen i.e., Repligen and HubSpot go up and down completely randomly.
Pair Corralation between Repligen and HubSpot
Given the investment horizon of 90 days Repligen is expected to generate 3.42 times less return on investment than HubSpot. In addition to that, Repligen is 1.77 times more volatile than HubSpot. It trades about 0.09 of its total potential returns per unit of risk. HubSpot is currently generating about 0.55 per unit of volatility. If you would invest 55,808 in HubSpot on August 28, 2024 and sell it today you would earn a total of 17,374 from holding HubSpot or generate 31.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Repligen vs. HubSpot
Performance |
| Timeline |
| Repligen |
| HubSpot |
Repligen and HubSpot Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Repligen and HubSpot
The main advantage of trading using opposite Repligen and HubSpot positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Repligen position performs unexpectedly, HubSpot 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 HubSpot will offset losses from the drop in HubSpot's long position.| Repligen vs. Intuitive Surgical | Repligen vs. ResMed Inc | Repligen vs. Merit Medical Systems | Repligen vs. ICU Medical |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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