Correlation Between Repligen and SunLink Health

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

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

Diversification Opportunities for Repligen and SunLink Health

-0.18

Correlation Coefficient

Repligen  SunLink Health

Good diversification

The 3 months correlation between Repligen and SunLink is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding Repligen and SunLink Health Systems in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SunLink Health Systems 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 SunLink Health. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SunLink Health Systems has no effect on the direction of Repligen i.e., Repligen and SunLink Health go up and down completely randomly.

Pair Corralation between Repligen and SunLink Health

Given the investment horizon of 90 days Repligen is expected to generate 0.69 times more return on investment than SunLink Health. However, Repligen is 1.45 times less risky than SunLink Health. It trades about 0.03 of its potential returns per unit of risk. SunLink Health Systems is currently generating about 0.02 per unit of risk. If you would invest  14,517  in Repligen on September 5, 2024 and sell it today you would earn a total of  333.00  from holding Repligen or generate 2.29% return on investment over 90 days.

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

Repligen  vs.  SunLink Health Systems

Repligen

Risk-Adjusted Performance

2 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Repligen are ranked lower than 2 (%) 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 current stock price disarray, may contribute to short-term losses for the investors.

SunLink Health Systems

Risk-Adjusted Performance

1 of 100

Weak

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

Pair Trading with Repligen and SunLink Health

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

The idea behind Repligen and SunLink Health 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.