Correlation Between Repligen and Fair Isaac

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

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

Diversification Opportunities for Repligen and Fair Isaac

0.81

Correlation Coefficient

Repligen  Fair Isaac

Very poor diversification

The 3 months correlation between Repligen and Fair is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Repligen and Fair Isaac in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fair Isaac 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 Fair Isaac. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fair Isaac has no effect on the direction of Repligen i.e., Repligen and Fair Isaac go up and down completely randomly.

Pair Corralation between Repligen and Fair Isaac

Given the investment horizon of 90 days Repligen is expected to generate 3.32 times less return on investment than Fair Isaac. In addition to that, Repligen is 1.37 times more volatile than Fair Isaac. It trades about 0.02 of its total potential returns per unit of risk. Fair Isaac is currently generating about 0.11 per unit of volatility. If you would invest  35,273  in Fair Isaac on February 1, 2024 and sell it today you would earn a total of  78,060  from holding Fair Isaac or generate 221.3% return on investment over 90 days.

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

Repligen  vs.  Fair Isaac

Repligen

Risk-Adjusted Performance

0 of 100

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 unfluctuating performance in the last few months, the Stock's technical and fundamental indicators remain very healthy which may send shares a bit higher in June 2024. The recent disarray may also be a sign of long period up-swing for the firm investors.

Fair Isaac

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Fair Isaac has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest abnormal performance, the Stock's 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 Repligen and Fair Isaac

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

The idea behind Repligen and Fair Isaac 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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..