Correlation Between BioCryst Pharmaceuticals and Compugen

Can any of the company-specific risk be diversified away by investing in both BioCryst Pharmaceuticals 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 BioCryst Pharmaceuticals and Compugen into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between BioCryst Pharmaceuticals and Compugen, you can compare the effects of market volatilities on BioCryst Pharmaceuticals 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 BioCryst Pharmaceuticals with a short position of Compugen. Check out your portfolio center. Please also check ongoing floating volatility patterns of BioCryst Pharmaceuticals and Compugen.

Diversification Opportunities for BioCryst Pharmaceuticals and Compugen

-0.77

Correlation Coefficient

BioCryst Pharmaceuticals  Compugen

Pay attention - limited upside

The 3 months correlation between BioCryst and Compugen is -0.77. Overlapping area represents the amount of risk that can be diversified away by holding BioCryst Pharmaceuticals and Compugen in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Compugen and BioCryst Pharmaceuticals 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 BioCryst Pharmaceuticals 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 BioCryst Pharmaceuticals i.e., BioCryst Pharmaceuticals and Compugen go up and down completely randomly.

Pair Corralation between BioCryst Pharmaceuticals and Compugen

Given the investment horizon of 90 days BioCryst Pharmaceuticals is expected to under-perform the Compugen. But the stock apears to be less risky and, when comparing its historical volatility, BioCryst Pharmaceuticals is 1.78 times less risky than Compugen. The stock trades about -0.07 of its potential returns per unit of risk. The Compugen is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest  151.00  in Compugen on July 28, 2025 and sell it today you would earn a total of  29.00  from holding Compugen or generate 19.21% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	100.0%
Values	Daily Returns

BioCryst Pharmaceuticals  vs.  Compugen

BioCryst Pharmaceuticals

Risk-Adjusted Performance

Weakest

Over the last 90 days BioCryst Pharmaceuticals has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest uncertain performance, the Stock's basic indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the company investors.

Compugen

Risk-Adjusted Performance

Mild

Compared to the overall equity markets, risk-adjusted returns on investments in Compugen are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of very unsteady technical and fundamental indicators, Compugen displayed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with BioCryst Pharmaceuticals and Compugen

The main advantage of trading using opposite BioCryst Pharmaceuticals and Compugen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BioCryst Pharmaceuticals 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.

The idea behind BioCryst Pharmaceuticals and Compugen pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.