Correlation Between Equillium and Seer

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

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

Diversification Opportunities for Equillium and Seer

-0.73

Correlation Coefficient

Equillium  Seer

Pay attention - limited upside

The 3 months correlation between Equillium and Seer is -0.73. Overlapping area represents the amount of risk that can be diversified away by holding Equillium and Seer Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Seer Inc and Equillium 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 Equillium are associated (or correlated) with Seer. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Seer Inc has no effect on the direction of Equillium i.e., Equillium and Seer go up and down completely randomly.

Pair Corralation between Equillium and Seer

Allowing for the 90-day total investment horizon Equillium is expected to generate 2.45 times more return on investment than Seer. However, Equillium is 2.45 times more volatile than Seer Inc. It trades about 0.02 of its potential returns per unit of risk. Seer Inc is currently generating about 0.05 per unit of risk. If you would invest  87.00  in Equillium on October 24, 2024 and sell it today you would lose (24.06) from holding Equillium or give up 27.66% of portfolio value over 90 days.

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

Equillium  vs.  Seer Inc

Equillium

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Equillium has generated negative risk-adjusted returns adding no value to investors with long positions. Even with weak performance in the last few months, the Stock's basic indicators remain relatively invariable which may send shares a bit higher in February 2025. The latest agitation may also be a sign of long-running up-swing for the enterprise retail investors.

Seer Inc

Risk-Adjusted Performance

12 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Seer Inc are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. Even with relatively unsteady technical and fundamental indicators, Seer reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Equillium and Seer

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

The idea behind Equillium and Seer 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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.