Correlation Between Sonida Senior and Repligen
Can any of the company-specific risk be diversified away by investing in both Sonida Senior 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 Sonida Senior and Repligen into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sonida Senior Living and Repligen, you can compare the effects of market volatilities on Sonida Senior 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 Sonida Senior with a short position of Repligen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sonida Senior and Repligen.
Diversification Opportunities for Sonida Senior and Repligen
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Sonida and Repligen is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding Sonida Senior Living and Repligen in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Repligen and Sonida Senior 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 Sonida Senior Living 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 Sonida Senior i.e., Sonida Senior and Repligen go up and down completely randomly.
Pair Corralation between Sonida Senior and Repligen
Given the investment horizon of 90 days Sonida Senior Living is expected to generate 1.57 times more return on investment than Repligen. However, Sonida Senior is 1.57 times more volatile than Repligen. It trades about 0.04 of its potential returns per unit of risk. Repligen is currently generating about 0.0 per unit of risk. If you would invest 1,626 in Sonida Senior Living on August 26, 2024 and sell it today you would earn a total of 857.00 from holding Sonida Senior Living or generate 52.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.8% |
| Values | Daily Returns |
Sonida Senior Living vs. Repligen
Performance |
| Timeline |
| Sonida Senior Living |
| Repligen |
Sonida Senior and Repligen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sonida Senior and Repligen
The main advantage of trading using opposite Sonida Senior and Repligen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sonida Senior 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.| Sonida Senior vs. Heartbeam | Sonida Senior vs. EUDA Health Holdings | Sonida Senior vs. Nutex Health | Sonida Senior vs. Healthcare Triangle |
| Repligen vs. Fonar | Repligen vs. Burning Rock Biotech | Repligen vs. Sera Prognostics | Repligen vs. Exagen 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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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