Correlation Between Iteos Therapeutics and Compugen
Can any of the company-specific risk be diversified away by investing in both Iteos 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 Iteos Therapeutics and Compugen into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Iteos Therapeutics and Compugen, you can compare the effects of market volatilities on Iteos 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 Iteos Therapeutics with a short position of Compugen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Iteos Therapeutics and Compugen.
Diversification Opportunities for Iteos Therapeutics and Compugen
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Iteos and Compugen is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Iteos Therapeutics and Compugen in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Compugen and Iteos 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 Iteos 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 Iteos Therapeutics i.e., Iteos Therapeutics and Compugen go up and down completely randomly.
Pair Corralation between Iteos Therapeutics and Compugen
Given the investment horizon of 90 days Iteos Therapeutics is expected to under-perform the Compugen. But the stock apears to be less risky and, when comparing its historical volatility, Iteos Therapeutics is 1.54 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 | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Iteos Therapeutics vs. Compugen
Performance |
| Timeline |
| Iteos Therapeutics |
| Compugen |
Iteos Therapeutics and Compugen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Iteos Therapeutics and Compugen
The main advantage of trading using opposite Iteos Therapeutics and Compugen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Iteos 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.| Iteos Therapeutics vs. Annexon | Iteos Therapeutics vs. Monte Rosa Therapeutics | Iteos Therapeutics vs. Design Therapeutics | Iteos Therapeutics vs. Erasca Inc |
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.
Other Complementary Tools
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators |