Correlation Between Repligen and Stardust Power

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

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

Diversification Opportunities for Repligen and Stardust Power

-0.23

Correlation Coefficient

Repligen  Stardust Power

Very good diversification

The 3 months correlation between Repligen and Stardust is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding Repligen and Stardust Power in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Stardust Power 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 Stardust Power. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Stardust Power has no effect on the direction of Repligen i.e., Repligen and Stardust Power go up and down completely randomly.

Pair Corralation between Repligen and Stardust Power

Given the investment horizon of 90 days Repligen is expected to generate 2.16 times less return on investment than Stardust Power. But when comparing it to its historical volatility, Repligen is 4.47 times less risky than Stardust Power. It trades about 0.06 of its potential returns per unit of risk. Stardust Power is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest  43.00  in Stardust Power on September 12, 2024 and sell it today you would lose (10.90) from holding Stardust Power or give up 25.35% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	82.81%
Values	Daily Returns

Repligen  vs.  Stardust Power

Repligen

Risk-Adjusted Performance

4 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Repligen are ranked lower than 4 (%) 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.

Stardust Power

Risk-Adjusted Performance

2 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Stardust Power are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of fairly unfluctuating basic indicators, Stardust Power showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Repligen and Stardust Power

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

The idea behind Repligen and Stardust Power 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 CEOs Directory module to screen CEOs from public companies around the world.