Correlation Between Waters and Repligen
Can any of the company-specific risk be diversified away by investing in both Waters 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 Waters and Repligen into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Waters and Repligen, you can compare the effects of market volatilities on Waters 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 Waters with a short position of Repligen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Waters and Repligen.
Diversification Opportunities for Waters and Repligen
Average diversification
The 3 months correlation between Waters and Repligen is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding Waters and Repligen in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Repligen and Waters 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 Waters 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 Waters i.e., Waters and Repligen go up and down completely randomly.
Pair Corralation between Waters and Repligen
Considering the 90-day investment horizon Waters is expected to generate 0.68 times more return on investment than Repligen. However, Waters is 1.46 times less risky than Repligen. It trades about 0.06 of its potential returns per unit of risk. Repligen is currently generating about 0.0 per unit of risk. If you would invest 27,635 in Waters on August 29, 2024 and sell it today you would earn a total of 11,022 from holding Waters or generate 39.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Waters vs. Repligen
Performance |
| Timeline |
| Waters |
| Repligen |
Waters and Repligen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Waters and Repligen
The main advantage of trading using opposite Waters and Repligen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Waters 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.| Waters vs. IDEXX Laboratories | Waters vs. IQVIA Holdings | Waters vs. Charles River Laboratories | Waters vs. Revvity |
| 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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity |