Correlation Between Orthofix Medical and Compugen

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

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

Diversification Opportunities for Orthofix Medical and Compugen

-0.51

Correlation Coefficient

Orthofix Medical  Compugen

Excellent diversification

The 3 months correlation between Orthofix and Compugen is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding Orthofix Medical and Compugen in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Compugen and Orthofix Medical 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 Orthofix Medical 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 Orthofix Medical i.e., Orthofix Medical and Compugen go up and down completely randomly.

Pair Corralation between Orthofix Medical and Compugen

Given the investment horizon of 90 days Orthofix Medical is expected to under-perform the Compugen. But the stock apears to be less risky and, when comparing its historical volatility, Orthofix Medical is 1.63 times less risky than Compugen. The stock trades about -0.1 of its potential returns per unit of risk. The Compugen is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest  152.00  in Compugen on May 1, 2025 and sell it today you would lose (4.00) from holding Compugen or give up 2.63% of portfolio value over 90 days.

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

Orthofix Medical  vs.  Compugen

Orthofix Medical

Risk-Adjusted Performance

Very Weak

Over the last 90 days Orthofix Medical has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unsteady performance in the last few months, the Stock's forward indicators remain fairly strong which may send shares a bit higher in August 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Compugen

Risk-Adjusted Performance

Very Weak

Over the last 90 days Compugen has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy technical and fundamental indicators, Compugen is not utilizing all of its potentials. The recent stock price disarray, may contribute to short-term losses for the investors.

Pair Trading with Orthofix Medical and Compugen

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

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.