Correlation Between Sera Prognostics and Repligen
Can any of the company-specific risk be diversified away by investing in both Sera Prognostics and Repligen 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 Sera Prognostics and Repligen into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sera Prognostics and Repligen, you can compare the effects of market volatilities on Sera Prognostics and Repligen 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 Sera Prognostics with a short position of Repligen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sera Prognostics and Repligen.
Diversification Opportunities for Sera Prognostics and Repligen
0.35 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Sera and Repligen is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding Sera Prognostics and Repligen in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Repligen and Sera Prognostics 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 Sera Prognostics are associated (or correlated) with Repligen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Repligen has no effect on the direction of Sera Prognostics i.e., Sera Prognostics and Repligen go up and down completely randomly.
Pair Corralation between Sera Prognostics and Repligen
Given the investment horizon of 90 days Sera Prognostics is expected to under-perform the Repligen. In addition to that, Sera Prognostics is 1.71 times more volatile than Repligen. It trades about -0.01 of its total potential returns per unit of risk. Repligen is currently generating about 0.14 per unit of volatility. If you would invest 13,487 in Repligen on August 30, 2024 and sell it today you would earn a total of 1,512 from holding Repligen or generate 11.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sera Prognostics vs. Repligen
Performance |
| Timeline |
| Sera Prognostics |
| Repligen |
Sera Prognostics and Repligen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sera Prognostics and Repligen
The main advantage of trading using opposite Sera Prognostics and Repligen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sera Prognostics position performs unexpectedly, Repligen 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 Repligen will offset losses from the drop in Repligen's long position.| Sera Prognostics vs. Fonar | Sera Prognostics vs. Burning Rock Biotech | Sera Prognostics vs. Exagen Inc | Sera Prognostics vs. Sotera Health Co |
| 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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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