Correlation Between Moolec Science and Compugen

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

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

Diversification Opportunities for Moolec Science and Compugen

-0.33

Correlation Coefficient

Moolec Science  Compugen

Very good diversification

The 3 months correlation between Moolec and Compugen is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding Moolec Science SA and Compugen in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Compugen and Moolec Science 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 Moolec Science SA 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 Moolec Science i.e., Moolec Science and Compugen go up and down completely randomly.

Pair Corralation between Moolec Science and Compugen

Assuming the 90 days horizon Moolec Science SA is expected to generate 4.96 times more return on investment than Compugen. However, Moolec Science is 4.96 times more volatile than Compugen. It trades about 0.13 of its potential returns per unit of risk. Compugen is currently generating about 0.07 per unit of risk. If you would invest  1.21  in Moolec Science SA on May 14, 2025 and sell it today you would earn a total of  0.68  from holding Moolec Science SA or generate 56.2% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	79.03%
Values	Daily Returns

Moolec Science SA  vs.  Compugen

Moolec Science SA

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Moolec Science SA are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. In spite of fairly abnormal fundamental indicators, Moolec Science showed solid returns over the last few months and may actually be approaching a breakup point.

Compugen

Risk-Adjusted Performance

Mild

Compared to the overall equity markets, risk-adjusted returns on investments in Compugen are ranked lower than 5 (%) 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.

Pair Trading with Moolec Science and Compugen

The main advantage of trading using opposite Moolec Science and Compugen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Moolec Science 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 Moolec Science SA 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 AI Portfolio Prophet module to use AI to generate optimal portfolios and find profitable investment opportunities.