Correlation Between TG Therapeutics and Seagen
Can any of the company-specific risk be diversified away by investing in both TG Therapeutics 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 TG Therapeutics and Seagen into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between TG Therapeutics and Seagen Inc, you can compare the effects of market volatilities on TG Therapeutics 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 TG Therapeutics with a short position of Seagen. Check out your portfolio center. Please also check ongoing floating volatility patterns of TG Therapeutics and Seagen.
Diversification Opportunities for TG Therapeutics and Seagen
-0.2 | Correlation Coefficient |
Good diversification
The 3 months correlation between TGTX and Seagen is -0.2. Overlapping area represents the amount of risk that can be diversified away by holding TG Therapeutics and Seagen Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Seagen Inc and TG Therapeutics 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 TG Therapeutics 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 TG Therapeutics i.e., TG Therapeutics and Seagen go up and down completely randomly.
Pair Corralation between TG Therapeutics and Seagen
If you would invest 2,435 in TG Therapeutics on August 28, 2024 and sell it today you would earn a total of 1,026 from holding TG Therapeutics or generate 42.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 4.76% |
| Values | Daily Returns |
TG Therapeutics vs. Seagen Inc
Performance |
| Timeline |
| TG Therapeutics |
| Seagen Inc |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
TG Therapeutics and Seagen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with TG Therapeutics and Seagen
The main advantage of trading using opposite TG Therapeutics and Seagen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TG Therapeutics 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.| TG Therapeutics vs. Eliem Therapeutics | TG Therapeutics vs. HCW Biologics | TG Therapeutics vs. Scpharmaceuticals | TG Therapeutics vs. Milestone Pharmaceuticals |
| 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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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