Correlation Between OraSure Technologies and Repro Med

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

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

Diversification Opportunities for OraSure Technologies and Repro Med

-0.73

Correlation Coefficient

OraSure Technologies  Repro Med

Pay attention - limited upside

The 3 months correlation between OraSure and Repro is -0.73. Overlapping area represents the amount of risk that can be diversified away by holding OraSure Technologies and Repro Med Systems in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Repro Med Systems and OraSure Technologies 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 OraSure Technologies are associated (or correlated) with Repro Med. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Repro Med Systems has no effect on the direction of OraSure Technologies i.e., OraSure Technologies and Repro Med go up and down completely randomly.

Pair Corralation between OraSure Technologies and Repro Med

Given the investment horizon of 90 days OraSure Technologies is expected to under-perform the Repro Med. But the stock apears to be less risky and, when comparing its historical volatility, OraSure Technologies is 1.48 times less risky than Repro Med. The stock trades about -0.11 of its potential returns per unit of risk. The Repro Med Systems is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest  215.00  in Repro Med Systems on October 8, 2024 and sell it today you would earn a total of  175.00  from holding Repro Med Systems or generate 81.4% return on investment over 90 days.

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

OraSure Technologies  vs.  Repro Med Systems

OraSure Technologies

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days OraSure Technologies has generated negative risk-adjusted returns adding no value to investors with long positions. Even with latest weak performance, the Stock's basic indicators remain invariable and the latest agitation on Wall Street may also be a sign of long-running gains for the enterprise retail investors.

Repro Med Systems

Risk-Adjusted Performance

16 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Repro Med Systems are ranked lower than 16 (%) of all global equities and portfolios over the last 90 days. In spite of rather weak primary indicators, Repro Med exhibited solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with OraSure Technologies and Repro Med

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

The idea behind OraSure Technologies and Repro Med Systems 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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.