Correlation Between Estrella Immunopharma and Compugen
Can any of the company-specific risk be diversified away by investing in both Estrella Immunopharma 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 Estrella Immunopharma and Compugen into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Estrella Immunopharma and Compugen, you can compare the effects of market volatilities on Estrella Immunopharma 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 Estrella Immunopharma with a short position of Compugen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Estrella Immunopharma and Compugen.
Diversification Opportunities for Estrella Immunopharma and Compugen
-0.47 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Estrella and Compugen is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding Estrella Immunopharma and Compugen in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Compugen and Estrella Immunopharma 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 Estrella Immunopharma 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 Estrella Immunopharma i.e., Estrella Immunopharma and Compugen go up and down completely randomly.
Pair Corralation between Estrella Immunopharma and Compugen
Assuming the 90 days horizon Estrella Immunopharma is expected to generate 10.16 times more return on investment than Compugen. However, Estrella Immunopharma is 10.16 times more volatile than Compugen. It trades about 0.19 of its potential returns per unit of risk. Compugen is currently generating about -0.05 per unit of risk. If you would invest 3.62 in Estrella Immunopharma on September 1, 2024 and sell it today you would earn a total of 5.48 from holding Estrella Immunopharma or generate 151.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 39.68% |
| Values | Daily Returns |
Estrella Immunopharma vs. Compugen
Performance |
| Timeline |
| Estrella Immunopharma |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
OK
| Compugen |
Estrella Immunopharma and Compugen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Estrella Immunopharma and Compugen
The main advantage of trading using opposite Estrella Immunopharma and Compugen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Estrella Immunopharma 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.| Estrella Immunopharma vs. Tff Pharmaceuticals | Estrella Immunopharma vs. Eliem Therapeutics | Estrella Immunopharma vs. Inhibrx | Estrella Immunopharma vs. Enliven Therapeutics |
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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
Other Complementary Tools
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities |