Correlation Between Repligen and Coca Cola
Can any of the company-specific risk be diversified away by investing in both Repligen and Coca Cola 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 Coca Cola into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Repligen and The Coca Cola, you can compare the effects of market volatilities on Repligen and Coca Cola 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 Coca Cola. Check out your portfolio center. Please also check ongoing floating volatility patterns of Repligen and Coca Cola.
Diversification Opportunities for Repligen and Coca Cola
Very weak diversification
The 3 months correlation between Repligen and Coca is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding Repligen and The Coca Cola in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Coca Cola 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 Coca Cola. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Coca Cola has no effect on the direction of Repligen i.e., Repligen and Coca Cola go up and down completely randomly.
Pair Corralation between Repligen and Coca Cola
Given the investment horizon of 90 days Repligen is expected to generate 4.64 times more return on investment than Coca Cola. However, Repligen is 4.64 times more volatile than The Coca Cola. It trades about 0.06 of its potential returns per unit of risk. The Coca Cola is currently generating about -0.21 per unit of risk. If you would invest 13,721 in Repligen on August 27, 2024 and sell it today you would earn a total of 537.00 from holding Repligen or generate 3.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Repligen vs. The Coca Cola
Performance |
| Timeline |
| Repligen |
| Coca Cola |
Repligen and Coca Cola Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Repligen and Coca Cola
The main advantage of trading using opposite Repligen and Coca Cola positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Repligen position performs unexpectedly, Coca Cola 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 Coca Cola will offset losses from the drop in Coca Cola's long position.| Repligen vs. Intuitive Surgical | Repligen vs. ResMed Inc | Repligen vs. Merit Medical Systems | Repligen vs. ICU Medical |
| Coca Cola vs. Monster Beverage Corp | Coca Cola vs. Celsius Holdings | Coca Cola vs. Coca Cola Consolidated | Coca Cola vs. Keurig Dr Pepper |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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