Correlation Between Alcoa Corp and AMGEN
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By analyzing existing cross correlation between Alcoa Corp and AMGEN INC, you can compare the effects of market volatilities on Alcoa Corp 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 Alcoa Corp with a short position of AMGEN. Check out your portfolio center. Please also check ongoing floating volatility patterns of Alcoa Corp and AMGEN.
Diversification Opportunities for Alcoa Corp and AMGEN
-0.81 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Alcoa and AMGEN is -0.81. Overlapping area represents the amount of risk that can be diversified away by holding Alcoa Corp and AMGEN INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AMGEN INC and Alcoa Corp 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 Alcoa Corp 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 Alcoa Corp i.e., Alcoa Corp and AMGEN go up and down completely randomly.
Pair Corralation between Alcoa Corp and AMGEN
Allowing for the 90-day total investment horizon Alcoa Corp is expected to generate 3.58 times more return on investment than AMGEN. However, Alcoa Corp is 3.58 times more volatile than AMGEN INC. It trades about 0.03 of its potential returns per unit of risk. AMGEN INC is currently generating about 0.0 per unit of risk. If you would invest 4,402 in Alcoa Corp on August 29, 2024 and sell it today you would earn a total of 186.00 from holding Alcoa Corp or generate 4.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 96.03% |
| Values | Daily Returns |
Alcoa Corp vs. AMGEN INC
Performance |
| Timeline |
| Alcoa Corp |
| AMGEN INC |
Alcoa Corp and AMGEN Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Alcoa Corp and AMGEN
The main advantage of trading using opposite Alcoa Corp and AMGEN positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Alcoa Corp 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.| Alcoa Corp vs. Direxion Daily FTSE | Alcoa Corp vs. Dodge Global Stock | Alcoa Corp vs. Collegium Pharmaceutical | Alcoa Corp vs. Dreyfus Natural Resources |
| AMGEN vs. Harmony Gold Mining | AMGEN vs. GMS Inc | AMGEN vs. Taiwan Semiconductor Manufacturing | AMGEN vs. Consol Energy |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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