Correlation Between Seegene and Ananti

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

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

Diversification Opportunities for Seegene and Ananti

-0.01

Correlation Coefficient

Seegene  Ananti

Good diversification

The 3 months correlation between Seegene and Ananti is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding Seegene and Ananti Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ananti Inc and Seegene 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 Seegene are associated (or correlated) with Ananti. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ananti Inc has no effect on the direction of Seegene i.e., Seegene and Ananti go up and down completely randomly.

Pair Corralation between Seegene and Ananti

Assuming the 90 days trading horizon Seegene is expected to generate 1.61 times more return on investment than Ananti. However, Seegene is 1.61 times more volatile than Ananti Inc. It trades about 0.38 of its potential returns per unit of risk. Ananti Inc is currently generating about 0.11 per unit of risk. If you would invest  2,111,717  in Seegene on October 8, 2024 and sell it today you would earn a total of  673,283  from holding Seegene or generate 31.88% return on investment over 90 days.

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

Seegene  vs.  Ananti Inc

Seegene

Risk-Adjusted Performance

6 of 100

Very Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Seegene are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, Seegene sustained solid returns over the last few months and may actually be approaching a breakup point.

Ananti Inc

Risk-Adjusted Performance

4 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Ananti Inc are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, Ananti sustained solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Seegene and Ananti

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

The idea behind Seegene and Ananti Inc 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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.