Correlation Between Seagen and AnGes

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

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

Diversification Opportunities for Seagen and AnGes

0.0

Correlation Coefficient

Seagen  AnGes

Pay attention - limited upside

The 3 months correlation between Seagen and AnGes is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Seagen Inc and AnGes Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AnGes Inc and Seagen 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 Seagen Inc are associated (or correlated) with AnGes. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AnGes Inc has no effect on the direction of Seagen i.e., Seagen and AnGes go up and down completely randomly.

Pair Corralation between Seagen and AnGes

If you would invest  36.00  in AnGes Inc on December 29, 2024 and sell it today you would earn a total of  0.00  from holding AnGes Inc or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Seagen Inc  vs.  AnGes Inc

Seagen Inc

Risk-Adjusted Performance

Very Weak

Over the last 90 days Seagen Inc has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy technical and fundamental indicators, Seagen is not utilizing all of its potentials. The recent stock price disarray, may contribute to short-term losses for the investors.

AnGes Inc

Risk-Adjusted Performance

Very Weak

Over the last 90 days AnGes Inc has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, AnGes is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with Seagen and AnGes

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

The idea behind Seagen Inc and AnGes 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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.