Correlation Between Compugen and Iteos Therapeutics

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

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

Diversification Opportunities for Compugen and Iteos Therapeutics

0.81

Correlation Coefficient

Compugen  Iteos Therapeutics

Very poor diversification

The 3 months correlation between Compugen and Iteos is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Compugen and Iteos Therapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Iteos Therapeutics 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 Iteos Therapeutics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Iteos Therapeutics has no effect on the direction of Compugen i.e., Compugen and Iteos Therapeutics go up and down completely randomly.

Pair Corralation between Compugen and Iteos Therapeutics

Given the investment horizon of 90 days Compugen is expected to generate 3.14 times less return on investment than Iteos Therapeutics. In addition to that, Compugen is 1.23 times more volatile than Iteos Therapeutics. It trades about 0.05 of its total potential returns per unit of risk. Iteos Therapeutics is currently generating about 0.18 per unit of volatility. If you would invest  707.00  in Iteos Therapeutics on April 26, 2025 and sell it today you would earn a total of  308.00  from holding Iteos Therapeutics or generate 43.56% return on investment over 90 days.

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

Compugen  vs.  Iteos Therapeutics

Compugen

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Compugen are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of very unfluctuating technical and fundamental indicators, Compugen displayed solid returns over the last few months and may actually be approaching a breakup point.

Iteos Therapeutics

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Iteos Therapeutics are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, Iteos Therapeutics unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Compugen and Iteos Therapeutics

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

The idea behind Compugen and Iteos Therapeutics 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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.