Correlation Between Summit Hotel and Repligen

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

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

Diversification Opportunities for Summit Hotel and Repligen

0.41

Correlation Coefficient

Summit Hotel  Repligen

Very weak diversification

The 3 months correlation between Summit and Repligen is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding Summit Hotel Properties and Repligen in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Repligen and Summit Hotel 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 Summit Hotel Properties 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 Summit Hotel i.e., Summit Hotel and Repligen go up and down completely randomly.

Pair Corralation between Summit Hotel and Repligen

Considering the 90-day investment horizon Summit Hotel Properties is expected to under-perform the Repligen. But the stock apears to be less risky and, when comparing its historical volatility, Summit Hotel Properties is 1.68 times less risky than Repligen. The stock trades about -0.16 of its potential returns per unit of risk. The Repligen is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest  14,578  in Repligen on December 26, 2024 and sell it today you would lose (383.00) from holding Repligen or give up 2.63% of portfolio value over 90 days.

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

Summit Hotel Properties  vs.  Repligen

Summit Hotel Properties

Risk-Adjusted Performance

Very Weak

Over the last 90 days Summit Hotel Properties 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 very healthy which may send shares a bit higher in April 2025. The recent disarray may also be a sign of long period up-swing for the firm investors.

Repligen

Risk-Adjusted Performance

Very Weak

Over the last 90 days Repligen has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy technical and fundamental indicators, Repligen is not utilizing all of its potentials. The current stock price disarray, may contribute to short-term losses for the investors.

Pair Trading with Summit Hotel and Repligen

The main advantage of trading using opposite Summit Hotel and Repligen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Summit Hotel 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 Summit Hotel Properties 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 Money Managers module to screen money managers from public funds and ETFs managed around the world.