Correlation Between GREENX METALS and Amgen
Can any of the company-specific risk be diversified away by investing in both GREENX METALS and Amgen 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 GREENX METALS and Amgen into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GREENX METALS LTD and Amgen Inc, you can compare the effects of market volatilities on GREENX METALS and Amgen 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 GREENX METALS with a short position of Amgen. Check out your portfolio center. Please also check ongoing floating volatility patterns of GREENX METALS and Amgen.
Diversification Opportunities for GREENX METALS and Amgen
0.09 | Correlation Coefficient |
Significant diversification
The 3 months correlation between GREENX and Amgen is 0.09. Overlapping area represents the amount of risk that can be diversified away by holding GREENX METALS LTD and Amgen Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amgen Inc and GREENX METALS 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 GREENX METALS LTD are associated (or correlated) with Amgen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amgen Inc has no effect on the direction of GREENX METALS i.e., GREENX METALS and Amgen go up and down completely randomly.
Pair Corralation between GREENX METALS and Amgen
Assuming the 90 days trading horizon GREENX METALS LTD is expected to under-perform the Amgen. In addition to that, GREENX METALS is 2.61 times more volatile than Amgen Inc. It trades about -0.01 of its total potential returns per unit of risk. Amgen Inc is currently generating about 0.03 per unit of volatility. If you would invest 25,143 in Amgen Inc on August 25, 2024 and sell it today you would earn a total of 2,567 from holding Amgen Inc or generate 10.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
GREENX METALS LTD vs. Amgen Inc
Performance |
| Timeline |
| GREENX METALS LTD |
| Amgen Inc |
GREENX METALS and Amgen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GREENX METALS and Amgen
The main advantage of trading using opposite GREENX METALS and Amgen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GREENX METALS position performs unexpectedly, Amgen 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 Amgen will offset losses from the drop in Amgen's long position.| GREENX METALS vs. PERENNIAL ENERGY HD 01 | GREENX METALS vs. Superior Plus Corp | GREENX METALS vs. NMI Holdings | GREENX METALS vs. Origin Agritech |
| Amgen vs. Playtech plc | Amgen vs. Playa Hotels Resorts | Amgen vs. GREENX METALS LTD | Amgen vs. JD SPORTS FASH |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
Other Complementary Tools
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum |