Compugen Story

CGEN -  USA Stock  

USD 7.82  0.02  0.26%

Precision Biosciences would recover faster from the new pull down as its shares price went up 0.67% to Compugen's 3.24%As many rational traders are trying to avoid healthcare space, it makes sense to outline Compugen a little further and understand how it stands against Precision Biosciences and other similar entities. We are going to inspect some of the competitive aspects of both Compugen and Precision.
Published over a month ago
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Will Compugen (NASDAQ:CGEN) institutional investors shift to Precision (NASDAQ:DTIL)?
By analyzing existing technical and fundamental indicators between Compugen and Precision, you can compare the effects of market volatilities on both companies' prices and check if they can diversify away market risk if combined in one of your portfolios. You can also utilize pair trading strategies for matching a long position in Precision with a short position in Compugen. Check out our pair correlation module for more information.

Let's begin by analyzing the assets.
The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Compugen has an asset utilization ratio of 2.59 percent. This suggests that the company is making $0.0259 for each dollar of assets. An increasing asset utilization means that Compugen is more efficient with each dollar of assets it utilizes for everyday operations.
Out of tens of thousands of stocks, funds, and ETFs that trade on global exchanges each represent an individual company which you can analyze using comparative analysis. To determine which one of the two companies, such as Compugen or Precision is a better fit for your portfolio, analyzing a few basic fundamental indicators is a good first step.

How important is Compugen's Liquidity

Compugen financial leverage refers to using borrowed capital as a funding source to finance Compugen ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Compugen financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Please check the breakdown between Compugen's total debt and its cash.

Correlation Between Compugen and Precision Biosciences

In general, stock analysis is a method for investors and traders to make individual buying and selling decisions. Stock correlation analysis is also essential because it can help investors realize that they may not be as diversified as they think. Risk management strategies are usually required to make sure all portfolios are properly aligned against their risk tolerance level. You can consider holding Compugen together with similar or unrelated positions with a negative correlation. For example, you can also add Precision Biosciences to your portfolio. If Precision Biosciences is not perfectly correlated to Compugen it will diversify some of the market risks out of the positively correlated stocks in your portfolio. However, the disadvantage of this sort of hedging is that it can potentially affect your investment returns throughout market cycles. When Compugen for example, for example, performs excellent and delivers stable returns, the negatively correlated position you locked in as a hedge may drag your returns down.
Please check pair correlation details between CGEN and DTIL for more information.

Note

Are you currently holding both Compugen and Precision Biosciences in your portfolio?
Please note if you are using this as a pair-trade strategy between Compugen and Precision Biosciences, watch out for correlation discrepancy over time. Relying on the historical price correlations and assuming that it will not change may lead to short-term losses.

What is driving Compugen Investor Appetite?

Revenue is income that a firm generates from business activities such us rendering services or selling goods to customers. It is a crucial part of a business and an essential item when evaluating a company's financial statements. Revenues from a firm's primary business operations can be reported on the income statement as sales revenue, net sales, or simply sales, depending on the industry in which a given company operates.
Revenue is typically recorded when cash or cash equivalents are exchanged for services or goods and can include product or services discounts, promotions, as well as early payments on invoices or services rendered in advance.

Revenue Breakdown

Lets now check Compugen revenue. Based on the latest financial disclosure, Compugen reported 2 M of revenue. This is 99.97% lower than that of the Healthcare sector and 99.73% lower than that of the Biotechnology industry. The revenue for all United States stocks is 99.98% higher than that of Compugen. As for Precision Biosciences we see revenue of 24.29 M, which is 96.73% lower than that of the Biotechnology

Sector
742.9 M
CGEN2 Million0.26
Sector742.91 Million96.58
DTIL24.29 Million3.16

Over 3 percent slide for Compugen. What does it mean for institutional investors?

The treynor ratio is down to -0.81 as of today. Compugen exhibits very low volatility with skewness of 0.0 and kurtosis of 0.54. However, we advise investors to further study Compugen technical indicators to make sure all market info is available and is reliable. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Compugen's stock risk against market volatility during both bullying and bearish trends. The higher level of volatility that comes with bear markets can directly impact Compugen's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different stocks as prices fall.

Our Bottom Line On Compugen

Whereas other companies in the biotechnology industry are either recovering or due for a correction, Compugen may not be as strong as the others in terms of longer-term growth potentials. With a somewhat neutral outlook on your 90 days horizon, it may be better to hold off any trading activity and neither pick up new shares of Compugen nor quit your existing holdings in the Stock. It seems the expected volatility has not yet been fully factored into the current price. Please use our equity advice module to run different scenarios to ensure your current risk level and investment horizon are fully reflective of your current investing preferences in regards to Compugen.

About Contributor

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Raphi Shpitalnik do not own shares of Compugen. Please refer to our Terms of Use for any information regarding our disclosure principles.

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