Correlation Between Repro Med and Sysmex Corp

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

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

Diversification Opportunities for Repro Med and Sysmex Corp

-0.06

Correlation Coefficient

Repro Med  Sysmex Corp

Good diversification

The 3 months correlation between Repro and Sysmex is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding Repro Med Systems and Sysmex Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sysmex Corp and Repro Med 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 Repro Med Systems are associated (or correlated) with Sysmex Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sysmex Corp has no effect on the direction of Repro Med i.e., Repro Med and Sysmex Corp go up and down completely randomly.

Pair Corralation between Repro Med and Sysmex Corp

Given the investment horizon of 90 days Repro Med Systems is expected to under-perform the Sysmex Corp. In addition to that, Repro Med is 3.07 times more volatile than Sysmex Corp. It trades about -0.15 of its total potential returns per unit of risk. Sysmex Corp is currently generating about 0.04 per unit of volatility. If you would invest  1,834  in Sysmex Corp on December 28, 2024 and sell it today you would earn a total of  53.00  from holding Sysmex Corp or generate 2.89% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	98.36%
Values	Daily Returns

Repro Med Systems  vs.  Sysmex Corp

Repro Med Systems

Risk-Adjusted Performance

Very Weak

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

Sysmex Corp

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Sysmex Corp are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of fairly strong basic indicators, Sysmex Corp is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Repro Med and Sysmex Corp

The main advantage of trading using opposite Repro Med and Sysmex Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Repro Med position performs unexpectedly, Sysmex Corp 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 Sysmex Corp will offset losses from the drop in Sysmex Corp's long position.

The idea behind Repro Med Systems and Sysmex Corp 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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.