Correlation Between Repligen and Femasys

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

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

Diversification Opportunities for Repligen and Femasys

0.07

Correlation Coefficient

Repligen  Femasys

Significant diversification

The 3 months correlation between Repligen and Femasys is 0.07. Overlapping area represents the amount of risk that can be diversified away by holding Repligen and Femasys in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Femasys and Repligen 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 Repligen are associated (or correlated) with Femasys. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Femasys has no effect on the direction of Repligen i.e., Repligen and Femasys go up and down completely randomly.

Pair Corralation between Repligen and Femasys

Given the investment horizon of 90 days Repligen is expected to generate 1.39 times less return on investment than Femasys. But when comparing it to its historical volatility, Repligen is 1.2 times less risky than Femasys. It trades about 0.05 of its potential returns per unit of risk. Femasys is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest  112.00  in Femasys on September 12, 2024 and sell it today you would earn a total of  11.00  from holding Femasys or generate 9.82% return on investment over 90 days.

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

Repligen  vs.  Femasys

Repligen

Risk-Adjusted Performance

3 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Repligen are ranked lower than 3 (%) 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 January 2025.

Femasys

Risk-Adjusted Performance

4 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Femasys are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of fairly weak primary indicators, Femasys showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Repligen and Femasys

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

The idea behind Repligen and Femasys 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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.