Correlation Between Virax Biolabs and Compugen
Can any of the company-specific risk be diversified away by investing in both Virax Biolabs 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 Virax Biolabs and Compugen into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Virax Biolabs Group and Compugen, you can compare the effects of market volatilities on Virax Biolabs 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 Virax Biolabs with a short position of Compugen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Virax Biolabs and Compugen.
Diversification Opportunities for Virax Biolabs and Compugen
-0.14 | Correlation Coefficient |
Good diversification
The 3 months correlation between Virax and Compugen is -0.14. Overlapping area represents the amount of risk that can be diversified away by holding Virax Biolabs Group and Compugen in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Compugen and Virax Biolabs 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 Virax Biolabs Group 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 Virax Biolabs i.e., Virax Biolabs and Compugen go up and down completely randomly.
Pair Corralation between Virax Biolabs and Compugen
Given the investment horizon of 90 days Virax Biolabs is expected to generate 2.16 times less return on investment than Compugen. In addition to that, Virax Biolabs is 1.24 times more volatile than Compugen. It trades about 0.02 of its total potential returns per unit of risk. Compugen is currently generating about 0.06 per unit of volatility. If you would invest 63.00 in Compugen on November 27, 2024 and sell it today you would earn a total of 147.00 from holding Compugen or generate 233.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Virax Biolabs Group vs. Compugen
Performance |
| Timeline |
| Virax Biolabs Group |
| Compugen |
Virax Biolabs and Compugen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Virax Biolabs and Compugen
The main advantage of trading using opposite Virax Biolabs and Compugen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Virax Biolabs 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.| Virax Biolabs vs. Beam Therapeutics | Virax Biolabs vs. Editas Medicine | Virax Biolabs vs. Caribou Biosciences | Virax Biolabs vs. Verve 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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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