Correlation Between Seagen and Braxia Scientific

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

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

Diversification Opportunities for Seagen and Braxia Scientific

0.0

Correlation Coefficient

Seagen  Braxia Scientific

Pay attention - limited upside

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

Pair Corralation between Seagen and Braxia Scientific

If you would invest  0.30  in Braxia Scientific Corp on December 13, 2024 and sell it today you would lose (0.20) from holding Braxia Scientific Corp or give up 66.67% of portfolio value over 90 days.

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

Seagen Inc  vs.  Braxia Scientific Corp

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.

Braxia Scientific Corp

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Braxia Scientific Corp are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Despite nearly unfluctuating basic indicators, Braxia Scientific reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Seagen and Braxia Scientific

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

The idea behind Seagen Inc and Braxia Scientific Corp 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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.