Correlation Between STAAR Surgical and Repligen
Can any of the company-specific risk be diversified away by investing in both STAAR Surgical 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 STAAR Surgical and Repligen into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between STAAR Surgical and Repligen, you can compare the effects of market volatilities on STAAR Surgical 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 STAAR Surgical with a short position of Repligen. Check out your portfolio center. Please also check ongoing floating volatility patterns of STAAR Surgical and Repligen.
Diversification Opportunities for STAAR Surgical and Repligen
0.28 | Correlation Coefficient |
Modest diversification
The 3 months correlation between STAAR and Repligen is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding STAAR Surgical and Repligen in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Repligen and STAAR Surgical 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 STAAR Surgical 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 STAAR Surgical i.e., STAAR Surgical and Repligen go up and down completely randomly.
Pair Corralation between STAAR Surgical and Repligen
Given the investment horizon of 90 days STAAR Surgical is expected to under-perform the Repligen. In addition to that, STAAR Surgical is 1.09 times more volatile than Repligen. It trades about -0.03 of its total potential returns per unit of risk. Repligen is currently generating about 0.05 per unit of volatility. If you would invest 14,179 in Repligen on September 3, 2024 and sell it today you would earn a total of 875.00 from holding Repligen or generate 6.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
STAAR Surgical vs. Repligen
Performance |
| Timeline |
| STAAR Surgical |
| Repligen |
STAAR Surgical and Repligen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with STAAR Surgical and Repligen
The main advantage of trading using opposite STAAR Surgical and Repligen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if STAAR Surgical 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.| STAAR Surgical vs. ResMed Inc | STAAR Surgical vs. West Pharmaceutical Services | STAAR Surgical vs. ICU Medical | STAAR Surgical vs. Merit Medical Systems |
| 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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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