Correlation Between Biomx and Compugen
Can any of the company-specific risk be diversified away by investing in both Biomx 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 Biomx and Compugen into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Biomx Inc and Compugen, you can compare the effects of market volatilities on Biomx 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 Biomx with a short position of Compugen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Biomx and Compugen.
Diversification Opportunities for Biomx and Compugen
Very poor diversification
The 3 months correlation between Biomx and Compugen is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Biomx Inc and Compugen in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Compugen and Biomx 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 Biomx Inc 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 Biomx i.e., Biomx and Compugen go up and down completely randomly.
Pair Corralation between Biomx and Compugen
Given the investment horizon of 90 days Biomx Inc is expected to under-perform the Compugen. In addition to that, Biomx is 1.54 times more volatile than Compugen. It trades about -0.22 of its total potential returns per unit of risk. Compugen is currently generating about -0.03 per unit of volatility. 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 |
Biomx Inc vs. Compugen
Performance |
| Timeline |
| Biomx Inc |
| Compugen |
Biomx and Compugen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Biomx and Compugen
The main advantage of trading using opposite Biomx and Compugen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Biomx 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.| Biomx vs. ZyVersa Therapeutics | Biomx vs. Immix Biopharma | Biomx vs. Cns Pharmaceuticals | Biomx vs. Sonnet Biotherapeutics Holdings |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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