Correlation Between Seagen and Oxford Nanopore
Can any of the company-specific risk be diversified away by investing in both Seagen and Oxford Nanopore 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 Oxford Nanopore into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Seagen Inc and Oxford Nanopore Technologies, you can compare the effects of market volatilities on Seagen and Oxford Nanopore 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 Oxford Nanopore. Check out your portfolio center. Please also check ongoing floating volatility patterns of Seagen and Oxford Nanopore.
Diversification Opportunities for Seagen and Oxford Nanopore
-0.39 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Seagen and Oxford is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding Seagen Inc and Oxford Nanopore Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oxford Nanopore Tech 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 Oxford Nanopore. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oxford Nanopore Tech has no effect on the direction of Seagen i.e., Seagen and Oxford Nanopore go up and down completely randomly.
Pair Corralation between Seagen and Oxford Nanopore
If you would invest 191.00 in Oxford Nanopore Technologies on August 29, 2024 and sell it today you would lose (4.00) from holding Oxford Nanopore Technologies or give up 2.09% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 4.55% |
| Values | Daily Returns |
Seagen Inc vs. Oxford Nanopore Technologies
Performance |
| Timeline |
| Seagen Inc |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Oxford Nanopore Tech |
Seagen and Oxford Nanopore Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Seagen and Oxford Nanopore
The main advantage of trading using opposite Seagen and Oxford Nanopore positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Seagen position performs unexpectedly, Oxford Nanopore 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 Oxford Nanopore will offset losses from the drop in Oxford Nanopore's long position.| Seagen vs. Biomarin Pharmaceutical | Seagen vs. Alnylam Pharmaceuticals | Seagen vs. Exelixis | Seagen vs. Halozyme Therapeutics |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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