Correlation Between Collplant Biotechnologies and Compugen
Can any of the company-specific risk be diversified away by investing in both Collplant Biotechnologies 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 Collplant Biotechnologies and Compugen into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Collplant Biotechnologies and Compugen, you can compare the effects of market volatilities on Collplant Biotechnologies 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 Collplant Biotechnologies with a short position of Compugen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Collplant Biotechnologies and Compugen.
Diversification Opportunities for Collplant Biotechnologies and Compugen
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Collplant and Compugen is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding Collplant Biotechnologies and Compugen in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Compugen and Collplant Biotechnologies 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 Collplant Biotechnologies 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 Collplant Biotechnologies i.e., Collplant Biotechnologies and Compugen go up and down completely randomly.
Pair Corralation between Collplant Biotechnologies and Compugen
Given the investment horizon of 90 days Collplant Biotechnologies is expected to generate 0.92 times more return on investment than Compugen. However, Collplant Biotechnologies is 1.08 times less risky than Compugen. It trades about 0.07 of its potential returns per unit of risk. Compugen is currently generating about -0.22 per unit of risk. If you would invest 397.00 in Collplant Biotechnologies on August 26, 2024 and sell it today you would earn a total of 17.00 from holding Collplant Biotechnologies or generate 4.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Collplant Biotechnologies vs. Compugen
Performance |
| Timeline |
| Collplant Biotechnologies |
| Compugen |
Collplant Biotechnologies and Compugen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Collplant Biotechnologies and Compugen
The main advantage of trading using opposite Collplant Biotechnologies and Compugen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Collplant Biotechnologies 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.| Collplant Biotechnologies vs. Eliem Therapeutics | Collplant Biotechnologies vs. HCW Biologics | Collplant Biotechnologies vs. Scpharmaceuticals | Collplant Biotechnologies vs. Milestone Pharmaceuticals |
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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