Correlation Between Compugen and Enlivex Therapeutics
Can any of the company-specific risk be diversified away by investing in both Compugen and Enlivex Therapeutics 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 Compugen and Enlivex Therapeutics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Compugen and Enlivex Therapeutics, you can compare the effects of market volatilities on Compugen and Enlivex Therapeutics 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 Compugen with a short position of Enlivex Therapeutics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Compugen and Enlivex Therapeutics.
Diversification Opportunities for Compugen and Enlivex Therapeutics
0.38 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Compugen and Enlivex is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding Compugen and Enlivex Therapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Enlivex Therapeutics and Compugen 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 Compugen are associated (or correlated) with Enlivex Therapeutics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Enlivex Therapeutics has no effect on the direction of Compugen i.e., Compugen and Enlivex Therapeutics go up and down completely randomly.
Pair Corralation between Compugen and Enlivex Therapeutics
Assuming the 90 days trading horizon Compugen is expected to generate 1.53 times more return on investment than Enlivex Therapeutics. However, Compugen is 1.53 times more volatile than Enlivex Therapeutics. It trades about 0.05 of its potential returns per unit of risk. Enlivex Therapeutics is currently generating about -0.02 per unit of risk. If you would invest 33,080 in Compugen on September 3, 2024 and sell it today you would earn a total of 25,020 from holding Compugen or generate 75.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Compugen vs. Enlivex Therapeutics
Performance |
| Timeline |
| Compugen |
| Enlivex Therapeutics |
Compugen and Enlivex Therapeutics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Compugen and Enlivex Therapeutics
The main advantage of trading using opposite Compugen and Enlivex Therapeutics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Compugen position performs unexpectedly, Enlivex Therapeutics 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 Enlivex Therapeutics will offset losses from the drop in Enlivex Therapeutics' long position.| Compugen vs. Enlivex Therapeutics | Compugen vs. Purple Biotech | Compugen vs. BioLine RX | Compugen vs. Clal Biotechnology Industries |
| Enlivex Therapeutics vs. Purple Biotech | Enlivex Therapeutics vs. BioLine RX | Enlivex Therapeutics vs. Clal Biotechnology Industries | Enlivex Therapeutics vs. Evogene |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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