Correlation Between Repligen and Zhibao Technology
Can any of the company-specific risk be diversified away by investing in both Repligen and Zhibao Technology 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 Zhibao Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Repligen and Zhibao Technology Class, you can compare the effects of market volatilities on Repligen and Zhibao Technology 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 Zhibao Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Repligen and Zhibao Technology.
Diversification Opportunities for Repligen and Zhibao Technology
0.32 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Repligen and Zhibao is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding Repligen and Zhibao Technology Class in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhibao Technology Class 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 Zhibao Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhibao Technology Class has no effect on the direction of Repligen i.e., Repligen and Zhibao Technology go up and down completely randomly.
Pair Corralation between Repligen and Zhibao Technology
Given the investment horizon of 90 days Repligen is expected to under-perform the Zhibao Technology. But the stock apears to be less risky and, when comparing its historical volatility, Repligen is 1.89 times less risky than Zhibao Technology. The stock trades about -0.01 of its potential returns per unit of risk. The Zhibao Technology Class is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 370.00 in Zhibao Technology Class on August 27, 2024 and sell it today you would lose (70.00) from holding Zhibao Technology Class or give up 18.92% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 36.48% |
| Values | Daily Returns |
Repligen vs. Zhibao Technology Class
Performance |
| Timeline |
| Repligen |
| Zhibao Technology Class |
Repligen and Zhibao Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Repligen and Zhibao Technology
The main advantage of trading using opposite Repligen and Zhibao Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Repligen position performs unexpectedly, Zhibao Technology 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 Zhibao Technology will offset losses from the drop in Zhibao Technology's long position.| Repligen vs. Intuitive Surgical | Repligen vs. ResMed Inc | Repligen vs. Merit Medical Systems | Repligen vs. ICU Medical |
| Zhibao Technology vs. Repligen | Zhibao Technology vs. Universal Technical Institute | Zhibao Technology vs. Nuvalent | Zhibao Technology vs. Udemy Inc |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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