Correlation Between Seagen and American Express

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

Diversification Opportunities for Seagen and American Express

-0.43
  Correlation Coefficient

Very good diversification

The 3 months correlation between Seagen and American is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding Seagen Inc and American Express in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on American Express 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 American Express. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of American Express has no effect on the direction of Seagen i.e., Seagen and American Express go up and down completely randomly.

Pair Corralation between Seagen and American Express

Given the investment horizon of 90 days Seagen is expected to generate 2.32 times less return on investment than American Express. In addition to that, Seagen is 1.19 times more volatile than American Express. It trades about 0.02 of its total potential returns per unit of risk. American Express is currently generating about 0.05 per unit of volatility. If you would invest  9,127  in American Express on April 4, 2022 and sell it today you would earn a total of  4,913  from holding American Express or generate 53.83% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthVery Weak
Accuracy100.0%
ValuesDaily Returns

Seagen Inc  vs.  American Express

 Performance (%) 
      Timeline 
Seagen Inc 
Seagen Performance
7 of 100
Compared to the overall equity markets, risk-adjusted returns on investments in Seagen Inc are ranked lower than 7 (%) 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

American Express 
American Performance
0 of 100
Over the last 90 days American Express has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Stock's basic indicators remain very healthy which may send shares a bit higher in August 2022. The recent disarray may also be a sign of long period up-swing for the firm insiders.

Structure and Payout Changes

Forward Annual Dividend Yield
0.0148
Payout Ratio
0.19
Last Split Factor
10000:8753
Forward Annual Dividend Rate
2.08
Dividend Date
2022-08-10
Ex Dividend Date
2022-06-30
Last Split Date
2005-10-03

American Price Channel

Seagen and American Express Volatility Contrast

 Predicted Return Density 
      Returns 

Pair Trading with Seagen and American Express

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

American Express

Pair trading matchups for American Express

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 ETF Directory module to find actively traded Exchange Traded Funds (ETF) from around the world.

Other Complementary Tools

Money Managers
Screen money managers from public funds and ETFs managed around the world
Go
Fundamental Analysis
View fundamental data based on most recent published financial statements
Go
Fund Screener
Find actively-traded funds from around the world traded on over 30 global exchanges
Go
Instant Ratings
Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance
Go
Premium Stories
Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope
Go