Correlation Between Biomedix Incubator and Compugen
Can any of the company-specific risk be diversified away by investing in both Biomedix Incubator and Compugen 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 Biomedix Incubator and Compugen into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Biomedix Incubator and Compugen, you can compare the effects of market volatilities on Biomedix Incubator and Compugen 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 Biomedix Incubator with a short position of Compugen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Biomedix Incubator and Compugen.
Diversification Opportunities for Biomedix Incubator and Compugen
-0.42 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Biomedix and Compugen is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding Biomedix Incubator and Compugen in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Compugen and Biomedix Incubator 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 Biomedix Incubator are associated (or correlated) with Compugen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Compugen has no effect on the direction of Biomedix Incubator i.e., Biomedix Incubator and Compugen go up and down completely randomly.
Pair Corralation between Biomedix Incubator and Compugen
Assuming the 90 days trading horizon Biomedix Incubator is expected to generate 0.68 times more return on investment than Compugen. However, Biomedix Incubator is 1.46 times less risky than Compugen. It trades about 0.11 of its potential returns per unit of risk. Compugen is currently generating about 0.05 per unit of risk. If you would invest 347,000 in Biomedix Incubator on September 1, 2024 and sell it today you would earn a total of 1,629,000 from holding Biomedix Incubator or generate 469.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Biomedix Incubator vs. Compugen
Performance |
| Timeline |
| Biomedix Incubator |
| Compugen |
Biomedix Incubator and Compugen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Biomedix Incubator and Compugen
The main advantage of trading using opposite Biomedix Incubator and Compugen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Biomedix Incubator position performs unexpectedly, Compugen 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 Compugen will offset losses from the drop in Compugen's long position.| Biomedix Incubator vs. Discount Investment Corp | Biomedix Incubator vs. Analyst IMS Investment | Biomedix Incubator vs. Azorim Investment Development | Biomedix Incubator vs. Suny Cellular Communication |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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