Correlation Between Compugen and Alector

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

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

Diversification Opportunities for Compugen and Alector

-0.73

Correlation Coefficient

Compugen  Alector

Pay attention - limited upside

The 3 months correlation between Compugen and Alector is -0.73. Overlapping area represents the amount of risk that can be diversified away by holding Compugen and Alector in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Alector and Compugen 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 Compugen are associated (or correlated) with Alector. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Alector has no effect on the direction of Compugen i.e., Compugen and Alector go up and down completely randomly.

Pair Corralation between Compugen and Alector

Given the investment horizon of 90 days Compugen is expected to under-perform the Alector. But the stock apears to be less risky and, when comparing its historical volatility, Compugen is 3.3 times less risky than Alector. The stock trades about -0.15 of its potential returns per unit of risk. The Alector is currently generating about 0.19 of returns per unit of risk over similar time horizon. If you would invest  140.00  in Alector on June 28, 2025 and sell it today you would earn a total of  170.00  from holding Alector or generate 121.43% return on investment over 90 days.

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

Compugen  vs.  Alector

Compugen

Risk-Adjusted Performance

Weakest

Over the last 90 days Compugen has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Stock's technical and fundamental indicators remain very healthy which may send shares a bit higher in October 2025. The recent disarray may also be a sign of long period up-swing for the firm investors.

Alector

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Alector are ranked lower than 15 (%) of all global equities and portfolios over the last 90 days. In spite of rather weak technical and fundamental indicators, Alector exhibited solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Compugen and Alector

The main advantage of trading using opposite Compugen and Alector positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Compugen position performs unexpectedly, Alector 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 Alector will offset losses from the drop in Alector's long position.

The idea behind Compugen and Alector 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 CEOs Directory module to screen CEOs from public companies around the world.