Correlation Between Repligen and QUALCOMM

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

By analyzing existing cross correlation between Repligen and QUALCOMM INC 325, you can compare the effects of market volatilities on Repligen and QUALCOMM 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 QUALCOMM. Check out your portfolio center. Please also check ongoing floating volatility patterns of Repligen and QUALCOMM.

Diversification Opportunities for Repligen and QUALCOMM

0.07

Correlation Coefficient

Repligen  QUALCOMM

Significant diversification

The 3 months correlation between Repligen and QUALCOMM is 0.07. Overlapping area represents the amount of risk that can be diversified away by holding Repligen and QUALCOMM INC 325 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on QUALCOMM INC 325 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 QUALCOMM. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of QUALCOMM INC 325 has no effect on the direction of Repligen i.e., Repligen and QUALCOMM go up and down completely randomly.

Pair Corralation between Repligen and QUALCOMM

Given the investment horizon of 90 days Repligen is expected to generate 5.36 times more return on investment than QUALCOMM. However, Repligen is 5.36 times more volatile than QUALCOMM INC 325. It trades about 0.01 of its potential returns per unit of risk. QUALCOMM INC 325 is currently generating about -0.04 per unit of risk. If you would invest  15,093  in Repligen on August 30, 2024 and sell it today you would lose (94.00) from holding Repligen or give up 0.62% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	98.44%
Values	Daily Returns

Repligen  vs.  QUALCOMM INC 325

Repligen

Risk-Adjusted Performance

1 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Repligen are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of very healthy technical and fundamental indicators, Repligen is not utilizing all of its potentials. The latest stock price disarray, may contribute to short-term losses for the investors.

QUALCOMM INC 325

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days QUALCOMM INC 325 has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, QUALCOMM is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Repligen and QUALCOMM

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

The idea behind Repligen and QUALCOMM INC 325 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.