Correlation Between Inflection Point and Repligen

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

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

Diversification Opportunities for Inflection Point and Repligen

0.32

Correlation Coefficient

Inflection Point  Repligen

Weak diversification

The 3 months correlation between Inflection and Repligen is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding Inflection Point Acquisition and Repligen in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Repligen and Inflection Point 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 Inflection Point Acquisition 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 Inflection Point i.e., Inflection Point and Repligen go up and down completely randomly.

Pair Corralation between Inflection Point and Repligen

Given the investment horizon of 90 days Inflection Point Acquisition is expected to generate 1.54 times more return on investment than Repligen. However, Inflection Point is 1.54 times more volatile than Repligen. It trades about 0.01 of its potential returns per unit of risk. Repligen is currently generating about -0.02 per unit of risk. If you would invest  1,125  in Inflection Point Acquisition on December 30, 2024 and sell it today you would lose (46.00) from holding Inflection Point Acquisition or give up 4.09% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	82.26%
Values	Daily Returns

Inflection Point Acquisition  vs.  Repligen

Inflection Point Acq

Risk-Adjusted Performance

Very Weak

Over the last 90 days Inflection Point Acquisition has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly strong basic indicators, Inflection Point is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the 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 Inflection Point and Repligen

The main advantage of trading using opposite Inflection Point and Repligen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Inflection Point 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 Inflection Point Acquisition 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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.