Correlation Between Argenx SE and CSL

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

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

Diversification Opportunities for Argenx SE and CSL

-0.46

Correlation Coefficient

Argenx SE  CSL

Very good diversification

The 3 months correlation between Argenx and CSL is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding argenx SE and CSL in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CSL and Argenx SE 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 argenx SE are associated (or correlated) with CSL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CSL has no effect on the direction of Argenx SE i.e., Argenx SE and CSL go up and down completely randomly.

Pair Corralation between Argenx SE and CSL

Assuming the 90 days horizon Argenx SE is expected to generate 1.31 times less return on investment than CSL. But when comparing it to its historical volatility, argenx SE is 1.64 times less risky than CSL. It trades about 0.2 of its potential returns per unit of risk. CSL is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest  5,810  in CSL on September 8, 2025 and sell it today you would earn a total of  267.00  from holding CSL or generate 4.6% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

argenx SE  vs.  CSL

argenx SE

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in argenx SE are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. Despite nearly weak basic indicators, Argenx SE reported solid returns over the last few months and may actually be approaching a breakup point.

CSL

Risk-Adjusted Performance

Weakest

Over the last 90 days CSL has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest unfluctuating performance, the Stock's essential indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the company investors.

Pair Trading with Argenx SE and CSL

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

The idea behind argenx SE and CSL 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.

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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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.