Correlation Between ATT and Seagen
Can any of the company-specific risk be diversified away by investing in both ATT and Seagen 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 ATT and Seagen into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ATT Inc and Seagen Inc, you can compare the effects of market volatilities on ATT and Seagen 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 ATT with a short position of Seagen. Check out your portfolio center. Please also check ongoing floating volatility patterns of ATT and Seagen.
Diversification Opportunities for ATT and Seagen
Excellent diversification
The 3 months correlation between ATT and Seagen is -0.68. Overlapping area represents the amount of risk that can be diversified away by holding ATT Inc and Seagen Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Seagen Inc and ATT 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 ATT Inc are associated (or correlated) with Seagen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Seagen Inc has no effect on the direction of ATT i.e., ATT and Seagen go up and down completely randomly.
Pair Corralation between ATT and Seagen
If you would invest 1,680 in ATT Inc on August 24, 2024 and sell it today you would earn a total of 618.00 from holding ATT Inc or generate 36.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 0.8% |
| Values | Daily Returns |
ATT Inc vs. Seagen Inc
Performance |
| Timeline |
| ATT Inc |
| Seagen Inc |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
ATT and Seagen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ATT and Seagen
The main advantage of trading using opposite ATT and Seagen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ATT position performs unexpectedly, Seagen 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 Seagen will offset losses from the drop in Seagen's long position.| ATT vs. Small Cap Core | ATT vs. FitLife Brands, Common | ATT vs. Mutual Of America | ATT vs. Gfl Environmental Holdings |
| 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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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