Correlation Between Repligen and Novocure
Can any of the company-specific risk be diversified away by investing in both Repligen and Novocure 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 Novocure into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Repligen and Novocure, you can compare the effects of market volatilities on Repligen and Novocure 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 Novocure. Check out your portfolio center. Please also check ongoing floating volatility patterns of Repligen and Novocure.
Diversification Opportunities for Repligen and Novocure
Very weak diversification
The 3 months correlation between Repligen and Novocure is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding Repligen and Novocure in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Novocure 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 Novocure. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Novocure has no effect on the direction of Repligen i.e., Repligen and Novocure go up and down completely randomly.
Pair Corralation between Repligen and Novocure
Given the investment horizon of 90 days Repligen is expected to generate 1.04 times more return on investment than Novocure. However, Repligen is 1.04 times more volatile than Novocure. It trades about -0.01 of its potential returns per unit of risk. Novocure is currently generating about -0.02 per unit of risk. If you would invest 14,244 in Repligen on March 13, 2025 and sell it today you would lose (957.00) from holding Repligen or give up 6.72% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Repligen vs. Novocure
Performance |
| Timeline |
| Repligen |
| Novocure |
Repligen and Novocure Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Repligen and Novocure
The main advantage of trading using opposite Repligen and Novocure positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Repligen position performs unexpectedly, Novocure 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 Novocure will offset losses from the drop in Novocure's long position.| Repligen vs. Intuitive Surgical | Repligen vs. ResMed Inc | Repligen vs. Merit Medical Systems | Repligen vs. ICU Medical |
| Novocure vs. Globus Medical | Novocure vs. Insulet | Novocure vs. Inspire Medical Systems | Novocure vs. TransMedics Group |
Check out your portfolio center.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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
Other Complementary Tools
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments |