Correlation Between Virco Manufacturing and Repligen
Can any of the company-specific risk be diversified away by investing in both Virco Manufacturing 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 Virco Manufacturing and Repligen into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Virco Manufacturing and Repligen, you can compare the effects of market volatilities on Virco Manufacturing 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 Virco Manufacturing with a short position of Repligen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Virco Manufacturing and Repligen.
Diversification Opportunities for Virco Manufacturing and Repligen
-0.46 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Virco and Repligen is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding Virco Manufacturing and Repligen in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Repligen and Virco Manufacturing 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 Virco Manufacturing 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 Virco Manufacturing i.e., Virco Manufacturing and Repligen go up and down completely randomly.
Pair Corralation between Virco Manufacturing and Repligen
Given the investment horizon of 90 days Virco Manufacturing is expected to under-perform the Repligen. But the stock apears to be less risky and, when comparing its historical volatility, Virco Manufacturing is 1.21 times less risky than Repligen. The stock trades about -0.14 of its potential returns per unit of risk. The Repligen is currently generating about -0.02 of returns per unit of risk over similar time horizon. If you would invest 16,801 in Repligen on November 27, 2024 and sell it today you would lose (327.00) from holding Repligen or give up 1.95% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Virco Manufacturing vs. Repligen
Performance |
| Timeline |
| Virco Manufacturing |
| Repligen |
Virco Manufacturing and Repligen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Virco Manufacturing and Repligen
The main advantage of trading using opposite Virco Manufacturing and Repligen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Virco Manufacturing 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.| Virco Manufacturing vs. Bassett Furniture Industries | Virco Manufacturing vs. Hooker Furniture | Virco Manufacturing vs. Natuzzi SpA | Virco Manufacturing vs. Flexsteel Industries |
| 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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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