Correlation Between Shikun Binui and Compugen
Can any of the company-specific risk be diversified away by investing in both Shikun Binui 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 Shikun Binui and Compugen into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Shikun Binui and Compugen, you can compare the effects of market volatilities on Shikun Binui 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 Shikun Binui with a short position of Compugen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shikun Binui and Compugen.
Diversification Opportunities for Shikun Binui and Compugen
-0.28 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Shikun and Compugen is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding Shikun Binui and Compugen in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Compugen and Shikun Binui 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 Shikun Binui 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 Shikun Binui i.e., Shikun Binui and Compugen go up and down completely randomly.
Pair Corralation between Shikun Binui and Compugen
Assuming the 90 days trading horizon Shikun Binui is expected to generate 0.74 times more return on investment than Compugen. However, Shikun Binui is 1.36 times less risky than Compugen. It trades about -0.33 of its potential returns per unit of risk. Compugen is currently generating about -0.47 per unit of risk. If you would invest 91,100 in Shikun Binui on January 28, 2024 and sell it today you would lose (9,700) from holding Shikun Binui or give up 10.65% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Shikun Binui vs. Compugen
Performance |
Timeline |
Shikun Binui |
Compugen |
Shikun Binui and Compugen Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Shikun Binui and Compugen
The main advantage of trading using opposite Shikun Binui and Compugen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shikun Binui 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.Shikun Binui vs. Paz Oil | Shikun Binui vs. First International Bank | Shikun Binui vs. Propert Buil | Shikun Binui vs. Export Inv |
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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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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