Correlation Between Protalix Biotherapeutics and Compugen
Can any of the company-specific risk be diversified away by investing in both Protalix Biotherapeutics 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 Protalix Biotherapeutics and Compugen into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Protalix Biotherapeutics and Compugen, you can compare the effects of market volatilities on Protalix Biotherapeutics 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 Protalix Biotherapeutics with a short position of Compugen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Protalix Biotherapeutics and Compugen.
Diversification Opportunities for Protalix Biotherapeutics and Compugen
-0.83 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Protalix and Compugen is -0.83. Overlapping area represents the amount of risk that can be diversified away by holding Protalix Biotherapeutics and Compugen in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Compugen and Protalix Biotherapeutics 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 Protalix Biotherapeutics 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 Protalix Biotherapeutics i.e., Protalix Biotherapeutics and Compugen go up and down completely randomly.
Pair Corralation between Protalix Biotherapeutics and Compugen
Considering the 90-day investment horizon Protalix Biotherapeutics is expected to generate 2.15 times less return on investment than Compugen. But when comparing it to its historical volatility, Protalix Biotherapeutics is 2.19 times less risky than Compugen. It trades about 0.04 of its potential returns per unit of risk. Compugen is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 104.00 in Compugen on August 30, 2024 and sell it today you would earn a total of 57.00 from holding Compugen or generate 54.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Protalix Biotherapeutics vs. Compugen
Performance |
| Timeline |
| Protalix Biotherapeutics |
| Compugen |
Protalix Biotherapeutics and Compugen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Protalix Biotherapeutics and Compugen
The main advantage of trading using opposite Protalix Biotherapeutics and Compugen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Protalix Biotherapeutics 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.| Protalix Biotherapeutics vs. Corvus Pharmaceuticals | Protalix Biotherapeutics vs. Aldeyra | Protalix Biotherapeutics vs. Checkpoint Therapeutics | Protalix Biotherapeutics vs. Cidara Therapeutics |
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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
Other Complementary Tools
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges |