Correlation Between Bram Indus and Compugen
Can any of the company-specific risk be diversified away by investing in both Bram Indus 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 Bram Indus and Compugen into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bram Indus and Compugen, you can compare the effects of market volatilities on Bram Indus 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 Bram Indus with a short position of Compugen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bram Indus and Compugen.
Diversification Opportunities for Bram Indus and Compugen
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Bram and Compugen is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Bram Indus and Compugen in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Compugen and Bram Indus 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 Bram Indus 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 Bram Indus i.e., Bram Indus and Compugen go up and down completely randomly.
Pair Corralation between Bram Indus and Compugen
Assuming the 90 days trading horizon Bram Indus is expected to generate 0.44 times more return on investment than Compugen. However, Bram Indus is 2.26 times less risky than Compugen. It trades about -0.11 of its potential returns per unit of risk. Compugen is currently generating about -0.45 per unit of risk. If you would invest 15,500 in Bram Indus on January 19, 2024 and sell it today you would lose (420.00) from holding Bram Indus or give up 2.71% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 94.74% |
| Values | Daily Returns |
Bram Indus vs. Compugen
Performance |
| Timeline |
| Bram Indus |
| Compugen |
Bram Indus and Compugen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bram Indus and Compugen
The main advantage of trading using opposite Bram Indus and Compugen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bram Indus 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.| Bram Indus vs. Elbit Systems | Bram Indus vs. Bezeq Israeli Telecommunication | Bram Indus vs. Bank Hapoalim | Bram Indus vs. Teva Pharmaceutical Industries |
| Compugen vs. Purple Biotech | Compugen vs. BioLine RX | Compugen vs. Clal Biotechnology Industries | Compugen vs. Evogene |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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