Correlation Between NanoString Technologies and Repro Med

Can any of the company-specific risk be diversified away by investing in both NanoString 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 NanoString 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 NanoString Technologies and Repro Med Systems, you can compare the effects of market volatilities on NanoString 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 NanoString Technologies with a short position of Repro Med. Check out your portfolio center. Please also check ongoing floating volatility patterns of NanoString Technologies and Repro Med.

Diversification Opportunities for NanoString Technologies and Repro Med

-0.64

Correlation Coefficient

NanoString Technologies  Repro Med

Excellent diversification

The 3 months correlation between NanoString and Repro is -0.64. Overlapping area represents the amount of risk that can be diversified away by holding NanoString 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 NanoString 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 NanoString 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 NanoString Technologies i.e., NanoString Technologies and Repro Med go up and down completely randomly.

Pair Corralation between NanoString Technologies and Repro Med

If you would invest  252.00  in Repro Med Systems on September 12, 2024 and sell it today you would earn a total of  141.00  from holding Repro Med Systems or generate 55.95% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	1.59%
Values	Daily Returns

NanoString Technologies  vs.  Repro Med Systems

NanoString Technologies

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days NanoString Technologies has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, NanoString Technologies is not utilizing all of its potentials. The newest stock price disturbance, may contribute to mid-run losses for the stockholders.

Repro Med Systems

Risk-Adjusted Performance

15 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Repro Med Systems are ranked lower than 15 (%) 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 NanoString Technologies and Repro Med

The main advantage of trading using opposite NanoString Technologies and Repro Med positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NanoString 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 NanoString 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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.