Correlation Between ImmuCell and Compugen
Can any of the company-specific risk be diversified away by investing in both ImmuCell 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 ImmuCell and Compugen into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ImmuCell and Compugen, you can compare the effects of market volatilities on ImmuCell 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 ImmuCell with a short position of Compugen. Check out your portfolio center. Please also check ongoing floating volatility patterns of ImmuCell and Compugen.
Diversification Opportunities for ImmuCell and Compugen
Very weak diversification
The 3 months correlation between ImmuCell and Compugen is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding ImmuCell and Compugen in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Compugen and ImmuCell 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 ImmuCell 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 ImmuCell i.e., ImmuCell and Compugen go up and down completely randomly.
Pair Corralation between ImmuCell and Compugen
Given the investment horizon of 90 days ImmuCell is expected to generate 0.47 times more return on investment than Compugen. However, ImmuCell is 2.14 times less risky than Compugen. It trades about 0.06 of its potential returns per unit of risk. Compugen is currently generating about -0.22 per unit of risk. If you would invest 362.00 in ImmuCell on August 26, 2024 and sell it today you would earn a total of 7.00 from holding ImmuCell or generate 1.93% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
ImmuCell vs. Compugen
Performance |
| Timeline |
| ImmuCell |
| Compugen |
ImmuCell and Compugen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ImmuCell and Compugen
The main advantage of trading using opposite ImmuCell and Compugen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ImmuCell 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.| ImmuCell vs. Transgene SA | ImmuCell vs. Alpha Cognition | ImmuCell vs. Fennec Pharmaceuticals | ImmuCell vs. Lipella Pharmaceuticals Common |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
Other Complementary Tools
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets |