Correlation Between Pfizer and Seagen

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Pfizer 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 Pfizer and Seagen into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Pfizer Inc and Seagen Inc, you can compare the effects of market volatilities on Pfizer 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 Pfizer with a short position of Seagen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pfizer and Seagen.

Diversification Opportunities for Pfizer and Seagen

0.17
  Correlation Coefficient

Average diversification

The 3 months correlation between Pfizer and Seagen is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding Pfizer Inc and Seagen Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Seagen Inc and Pfizer 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 Pfizer 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 Pfizer i.e., Pfizer and Seagen go up and down completely randomly.

Pair Corralation between Pfizer and Seagen

Considering the 90-day investment horizon Pfizer Inc is expected to generate 0.65 times more return on investment than Seagen. However, Pfizer Inc is 1.53 times less risky than Seagen. It trades about 0.05 of its potential returns per unit of risk. Seagen Inc is currently generating about 0.02 per unit of risk. If you would invest  3,384  in Pfizer Inc on May 9, 2022 and sell it today you would earn a total of  1,543  from holding Pfizer Inc or generate 45.6% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

Pfizer Inc  vs.  Seagen Inc

 Performance (%) 
       Timeline  
Pfizer Inc 
Pfizer Performance
2 of 100
Compared to the overall equity markets, risk-adjusted returns on investments in Pfizer Inc are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of rather sound technical and fundamental indicators, Pfizer is not utilizing all of its potentials. The latest stock price tumult, may contribute to shorter-term losses for the shareholders.

Pfizer Price Channel

Seagen Inc 
Seagen Performance
20 of 100
Compared to the overall equity markets, risk-adjusted returns on investments in Seagen Inc are ranked lower than 20 (%) of all global equities and portfolios over the last 90 days. Despite quite unsteady technical and fundamental indicators, Seagen disclosed solid returns over the last few months and may actually be approaching a breakup point.

Seagen Price Channel

Pfizer and Seagen Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Pfizer and Seagen

The main advantage of trading using opposite Pfizer and Seagen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pfizer 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.
The idea behind Pfizer Inc and Seagen 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.
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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.

Other Complementary Tools

Portfolio Center
All portfolio management and optimization tools to improve performance of your portfolios
Go
Price Exposure Probability
Analyze equity upside and downside potential for a given time horizon across multiple markets
Go
Options Analysis
Analyze and evaluate options and option chains as a potential hedge for your portfolios
Go
Portfolio Manager
State of the art Portfolio Manager to monitor and improve performance of your invested capital
Go
Pattern Recognition
Use different Pattern Recognition models to time the market across multiple global exchanges
Go
Technical Analysis
Check basic technical indicators and analysis based on most latest market data
Go
Premium Stories
Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope
Go
ETF Directory
Find actively traded Exchange Traded Funds (ETF) from around the world
Go
Global Markets Map
Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes
Go
Competition Analyzer
Analyze and compare many basic indicators for a group of related or unrelated entities
Go
Analyst Recommendations
Analyst recommendations and target price estimates broken down by several categories
Go
Competition Analyzer
Analyze and compare many basic indicators for a group of related or unrelated entities
Go