Correlation Between Haemonetics and Repligen

Can any of the company-specific risk be diversified away by investing in both Haemonetics 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 Haemonetics and Repligen into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Haemonetics and Repligen, you can compare the effects of market volatilities on Haemonetics 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 Haemonetics with a short position of Repligen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Haemonetics and Repligen.

Diversification Opportunities for Haemonetics and Repligen

-0.4

Correlation Coefficient

Haemonetics  Repligen

Very good diversification

The 3 months correlation between Haemonetics and Repligen is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding Haemonetics and Repligen in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Repligen and Haemonetics 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 Haemonetics 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 Haemonetics i.e., Haemonetics and Repligen go up and down completely randomly.

Pair Corralation between Haemonetics and Repligen

Considering the 90-day investment horizon Haemonetics is expected to under-perform the Repligen. In addition to that, Haemonetics is 1.05 times more volatile than Repligen. It trades about -0.17 of its total potential returns per unit of risk. Repligen is currently generating about 0.06 per unit of volatility. If you would invest  15,054  in Repligen on November 29, 2024 and sell it today you would earn a total of  1,227  from holding Repligen or generate 8.15% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

Haemonetics  vs.  Repligen

Haemonetics

Risk-Adjusted Performance

Very Weak

Over the last 90 days Haemonetics has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of inconsistent performance in the last few months, the Stock's basic indicators remain rather sound which may send shares a bit higher in March 2025. The latest tumult may also be a sign of longer-term up-swing for the firm shareholders.

Repligen

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Repligen are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of very fragile technical and fundamental indicators, Repligen may actually be approaching a critical reversion point that can send shares even higher in March 2025.

Pair Trading with Haemonetics and Repligen

The main advantage of trading using opposite Haemonetics and Repligen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Haemonetics 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.

The idea behind Haemonetics and Repligen pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.