Correlation Between Coursera and Sesen Bio

Can any of the company-specific risk be diversified away by investing in both Coursera and Sesen Bio 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 Coursera and Sesen Bio into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Coursera and Sesen Bio, you can compare the effects of market volatilities on Coursera and Sesen Bio 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 Coursera with a short position of Sesen Bio. Check out your portfolio center. Please also check ongoing floating volatility patterns of Coursera and Sesen Bio.

Diversification Opportunities for Coursera and Sesen Bio

0.0

Correlation Coefficient

Coursera  Sesen Bio

Pay attention - limited upside

The 3 months correlation between Coursera and Sesen is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Coursera and Sesen Bio in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sesen Bio and Coursera 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 Coursera are associated (or correlated) with Sesen Bio. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sesen Bio has no effect on the direction of Coursera i.e., Coursera and Sesen Bio go up and down completely randomly.

Pair Corralation between Coursera and Sesen Bio

If you would invest  63.00  in Sesen Bio on January 24, 2024 and sell it today you would earn a total of  0.00  from holding Sesen Bio or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	4.76%
Values	Daily Returns

Coursera  vs.  Sesen Bio

Coursera

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Coursera has generated negative risk-adjusted returns adding no value to investors with long positions. Even with uncertain performance in the last few months, the Stock's basic indicators remain relatively invariable which may send shares a bit higher in May 2024. The latest agitation may also be a sign of long-running up-swing for the enterprise retail investors.

Sesen Bio

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Sesen Bio has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy basic indicators, Sesen Bio is not utilizing all of its potentials. The current stock price disarray, may contribute to short-term losses for the investors.

Pair Trading with Coursera and Sesen Bio

The main advantage of trading using opposite Coursera and Sesen Bio positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Coursera position performs unexpectedly, Sesen Bio 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 Sesen Bio will offset losses from the drop in Sesen Bio's long position.

The idea behind Coursera and Sesen Bio 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 the Insider Screener module to find insiders across different sectors to evaluate their impact on performance.