Correlation Between Stereotaxis and Repligen

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

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

Diversification Opportunities for Stereotaxis and Repligen

0.75

Correlation Coefficient

Stereotaxis  Repligen

Poor diversification

The 3 months correlation between Stereotaxis and Repligen is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding Stereotaxis and Repligen in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Repligen and Stereotaxis 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 Stereotaxis 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 Stereotaxis i.e., Stereotaxis and Repligen go up and down completely randomly.

Pair Corralation between Stereotaxis and Repligen

Given the investment horizon of 90 days Stereotaxis is expected to under-perform the Repligen. In addition to that, Stereotaxis is 1.07 times more volatile than Repligen. It trades about -0.04 of its total potential returns per unit of risk. Repligen is currently generating about -0.03 per unit of volatility. If you would invest  15,987  in Repligen on February 3, 2025 and sell it today you would lose (1,836) from holding Repligen or give up 11.48% of portfolio value over 90 days.

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

Stereotaxis  vs.  Repligen

Stereotaxis

Risk-Adjusted Performance

Very Weak

Over the last 90 days Stereotaxis has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest weak performance, the Stock's basic indicators remain stable and the newest uproar on Wall Street may also be a sign of mid-term gains for the firm private investors.

Repligen

Risk-Adjusted Performance

Very Weak

Over the last 90 days Repligen has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest fragile performance, the Stock's technical and fundamental indicators remain healthy and the recent disarray on Wall Street may also be a sign of long period gains for the firm investors.

Pair Trading with Stereotaxis and Repligen

The main advantage of trading using opposite Stereotaxis and Repligen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Stereotaxis 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 Stereotaxis 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.

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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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.