Correlation Between LMF Acquisition and Compugen
Can any of the company-specific risk be diversified away by investing in both LMF Acquisition 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 LMF Acquisition and Compugen into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between LMF Acquisition Opportunities and Compugen, you can compare the effects of market volatilities on LMF Acquisition 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 LMF Acquisition with a short position of Compugen. Check out your portfolio center. Please also check ongoing floating volatility patterns of LMF Acquisition and Compugen.
Diversification Opportunities for LMF Acquisition and Compugen
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between LMF and Compugen is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding LMF Acquisition Opportunities and Compugen in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Compugen and LMF Acquisition 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 LMF Acquisition Opportunities 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 LMF Acquisition i.e., LMF Acquisition and Compugen go up and down completely randomly.
Pair Corralation between LMF Acquisition and Compugen
Considering the 90-day investment horizon LMF Acquisition Opportunities is expected to under-perform the Compugen. In addition to that, LMF Acquisition is 2.71 times more volatile than Compugen. It trades about -0.05 of its total potential returns per unit of risk. Compugen is currently generating about -0.05 per unit of volatility. If you would invest 219.00 in Compugen on September 1, 2024 and sell it today you would lose (58.00) from holding Compugen or give up 26.48% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
LMF Acquisition Opportunities vs. Compugen
Performance |
| Timeline |
| LMF Acquisition Oppo |
| Compugen |
LMF Acquisition and Compugen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with LMF Acquisition and Compugen
The main advantage of trading using opposite LMF Acquisition and Compugen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if LMF Acquisition 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.| LMF Acquisition vs. ZyVersa Therapeutics | LMF Acquisition vs. Sonnet Biotherapeutics Holdings | LMF Acquisition vs. Revelation Biosciences | LMF Acquisition vs. Quoin Pharmaceuticals Ltd |
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 Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
Other Complementary Tools
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets |