Correlation Between Repligen and Valens
Can any of the company-specific risk be diversified away by investing in both Repligen and Valens 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 Valens into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Repligen and Valens, you can compare the effects of market volatilities on Repligen and Valens 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 Valens. Check out your portfolio center. Please also check ongoing floating volatility patterns of Repligen and Valens.
Diversification Opportunities for Repligen and Valens
Average diversification
The 3 months correlation between Repligen and Valens is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding Repligen and Valens in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Valens 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 Valens. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Valens has no effect on the direction of Repligen i.e., Repligen and Valens go up and down completely randomly.
Pair Corralation between Repligen and Valens
Given the investment horizon of 90 days Repligen is expected to generate 0.84 times more return on investment than Valens. However, Repligen is 1.19 times less risky than Valens. It trades about 0.0 of its potential returns per unit of risk. Valens is currently generating about -0.02 per unit of risk. If you would invest 17,742 in Repligen on September 4, 2024 and sell it today you would lose (2,696) from holding Repligen or give up 15.2% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Repligen vs. Valens
Performance |
| Timeline |
| Repligen |
| Valens |
Repligen and Valens Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Repligen and Valens
The main advantage of trading using opposite Repligen and Valens positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Repligen position performs unexpectedly, Valens 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 Valens will offset losses from the drop in Valens' long position.| Repligen vs. Intuitive Surgical | Repligen vs. ResMed Inc | Repligen vs. Merit Medical Systems | Repligen vs. ICU Medical |
| Valens vs. Wolfspeed | Valens vs. GSI Technology | Valens vs. Lattice Semiconductor | Valens vs. ON Semiconductor |
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 Stocks Directory module to find actively traded stocks across global markets.
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