Correlation Between Alligator Bioscience and Combigene

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

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

Diversification Opportunities for Alligator Bioscience and Combigene

-0.52

Correlation Coefficient

Alligator Bioscience  Combigene

Excellent diversification

The 3 months correlation between Alligator and Combigene is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding Alligator Bioscience AB and Combigene AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Combigene AB and Alligator Bioscience 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 Alligator Bioscience AB are associated (or correlated) with Combigene. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Combigene AB has no effect on the direction of Alligator Bioscience i.e., Alligator Bioscience and Combigene go up and down completely randomly.

Pair Corralation between Alligator Bioscience and Combigene

Assuming the 90 days trading horizon Alligator Bioscience AB is expected to generate 2.29 times more return on investment than Combigene. However, Alligator Bioscience is 2.29 times more volatile than Combigene AB. It trades about 0.05 of its potential returns per unit of risk. Combigene AB is currently generating about 0.02 per unit of risk. If you would invest  525.00  in Alligator Bioscience AB on April 22, 2025 and sell it today you would earn a total of  40.00  from holding Alligator Bioscience AB or generate 7.62% return on investment over 90 days.

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

Alligator Bioscience AB  vs.  Combigene AB

Alligator Bioscience

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Alligator Bioscience AB are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, Alligator Bioscience unveiled solid returns over the last few months and may actually be approaching a breakup point.

Combigene AB

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Combigene AB are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable basic indicators, Combigene is not utilizing all of its potentials. The current stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with Alligator Bioscience and Combigene

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

The idea behind Alligator Bioscience AB and Combigene AB 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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.