Correlation Between Repare Therapeutics and Nano X

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

By analyzing existing cross correlation between Repare Therapeutics and Nano X Imaging, you can compare the effects of market volatilities on Repare Therapeutics and Nano X 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 Repare Therapeutics with a short position of Nano X. Check out your portfolio center. Please also check ongoing floating volatility patterns of Repare Therapeutics and Nano X.

Diversification Opportunities for Repare Therapeutics and Nano X

-0.23

Correlation Coefficient

Repare Therapeutics  Nano X

Very good diversification

The 3 months correlation between Repare and Nano is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding Repare Therapeutics and Nano X Imaging in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nano X Imaging and Repare Therapeutics 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 Repare Therapeutics are associated (or correlated) with Nano X. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nano X Imaging has no effect on the direction of Repare Therapeutics i.e., Repare Therapeutics and Nano X go up and down completely randomly.

Pair Corralation between Repare Therapeutics and Nano X

Given the investment horizon of 90 days Repare Therapeutics is expected to generate 1.03 times more return on investment than Nano X. However, Repare Therapeutics is 1.03 times more volatile than Nano X Imaging. It trades about 0.05 of its potential returns per unit of risk. Nano X Imaging is currently generating about -0.04 per unit of risk. If you would invest  140.00  in Repare Therapeutics on May 4, 2025 and sell it today you would earn a total of  10.00  from holding Repare Therapeutics or generate 7.14% return on investment over 90 days.

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

Repare Therapeutics  vs.  Nano X Imaging

Repare Therapeutics

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Repare Therapeutics are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of fairly uncertain basic indicators, Repare Therapeutics may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Nano X Imaging

Risk-Adjusted Performance

Very Weak

Over the last 90 days Nano X Imaging has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest conflicting performance, the Stock's basic indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the company investors.

Pair Trading with Repare Therapeutics and Nano X

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

The idea behind Repare Therapeutics and Nano X Imaging 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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.