Correlation Between Zinzino AB and Repligen
Can any of the company-specific risk be diversified away by investing in both Zinzino AB 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 Zinzino AB and Repligen into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Zinzino AB and Repligen, you can compare the effects of market volatilities on Zinzino AB 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 Zinzino AB with a short position of Repligen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zinzino AB and Repligen.
Diversification Opportunities for Zinzino AB and Repligen
0.34 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Zinzino and Repligen is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding Zinzino AB and Repligen in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Repligen and Zinzino AB 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 Zinzino AB 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 Zinzino AB i.e., Zinzino AB and Repligen go up and down completely randomly.
Pair Corralation between Zinzino AB and Repligen
Assuming the 90 days horizon Zinzino AB is expected to generate 1.67 times more return on investment than Repligen. However, Zinzino AB is 1.67 times more volatile than Repligen. It trades about 0.25 of its potential returns per unit of risk. Repligen is currently generating about -0.07 per unit of risk. If you would invest 1,020 in Zinzino AB on December 1, 2024 and sell it today you would earn a total of 280.00 from holding Zinzino AB or generate 27.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Zinzino AB vs. Repligen
Performance |
| Timeline |
| Zinzino AB |
| Repligen |
Zinzino AB and Repligen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zinzino AB and Repligen
The main advantage of trading using opposite Zinzino AB and Repligen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zinzino AB 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.| Zinzino AB vs. Treasury Wine Estates | Zinzino AB vs. Walt Disney | Zinzino AB vs. Cheche Group Class | Zinzino AB vs. Willamette Valley Vineyards |
| 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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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