Correlation Between Mink Therapeutics and Compugen
Can any of the company-specific risk be diversified away by investing in both Mink Therapeutics 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 Mink Therapeutics and Compugen into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mink Therapeutics and Compugen, you can compare the effects of market volatilities on Mink Therapeutics 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 Mink Therapeutics with a short position of Compugen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mink Therapeutics and Compugen.
Diversification Opportunities for Mink Therapeutics and Compugen
0.64 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Mink and Compugen is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding Mink Therapeutics and Compugen in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Compugen and Mink Therapeutics 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 Mink Therapeutics 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 Mink Therapeutics i.e., Mink Therapeutics and Compugen go up and down completely randomly.
Pair Corralation between Mink Therapeutics and Compugen
Given the investment horizon of 90 days Mink Therapeutics is expected to under-perform the Compugen. But the stock apears to be less risky and, when comparing its historical volatility, Mink Therapeutics is 1.62 times less risky than Compugen. The stock trades about -0.06 of its potential returns per unit of risk. The Compugen is currently generating about -0.03 of returns per unit of risk over similar time horizon. If you would invest 169.00 in Compugen on August 29, 2024 and sell it today you would lose (8.00) from holding Compugen or give up 4.73% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mink Therapeutics vs. Compugen
Performance |
| Timeline |
| Mink Therapeutics |
| Compugen |
Mink Therapeutics and Compugen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mink Therapeutics and Compugen
The main advantage of trading using opposite Mink Therapeutics and Compugen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mink Therapeutics 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.| Mink Therapeutics vs. Bright Minds Biosciences | Mink Therapeutics vs. HP Inc | Mink Therapeutics vs. Intel | Mink Therapeutics vs. Chevron Corp |
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 Anywhere module to track or share privately all of your investments from the convenience of any device.
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