Correlation Between Sartorius Aktiengesellscha and Repligen

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

By analyzing existing cross correlation between Sartorius Aktiengesellschaft and Repligen, you can compare the effects of market volatilities on Sartorius Aktiengesellscha and Repligen 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 Sartorius Aktiengesellscha with a short position of Repligen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sartorius Aktiengesellscha and Repligen.

Diversification Opportunities for Sartorius Aktiengesellscha and Repligen

-0.28

Correlation Coefficient

Sartorius Aktiengesellscha  Repligen

Very good diversification

The 3 months correlation between Sartorius and Repligen is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding Sartorius Aktiengesellschaft and Repligen in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Repligen and Sartorius Aktiengesellscha 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 Sartorius Aktiengesellschaft are associated (or correlated) with Repligen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Repligen has no effect on the direction of Sartorius Aktiengesellscha i.e., Sartorius Aktiengesellscha and Repligen go up and down completely randomly.

Pair Corralation between Sartorius Aktiengesellscha and Repligen

Assuming the 90 days horizon Sartorius Aktiengesellscha is expected to generate 3.23 times less return on investment than Repligen. In addition to that, Sartorius Aktiengesellscha is 1.38 times more volatile than Repligen. It trades about 0.01 of its total potential returns per unit of risk. Repligen is currently generating about 0.06 per unit of volatility. If you would invest  12,332  in Repligen on September 27, 2024 and sell it today you would earn a total of  2,363  from holding Repligen or generate 19.16% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	99.21%
Values	Daily Returns

Sartorius Aktiengesellschaft  vs.  Repligen

Sartorius Aktiengesellscha

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Sartorius Aktiengesellschaft has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fragile performance in the last few months, the Stock's basic indicators remain nearly stable which may send shares a bit higher in January 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

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 current stock price disarray, may contribute to short-term losses for the investors.

Pair Trading with Sartorius Aktiengesellscha and Repligen

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

The idea behind Sartorius Aktiengesellschaft and Repligen 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.

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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.