Correlation Between Akanda Corp and Amgen
Can any of the company-specific risk be diversified away by investing in both Akanda Corp 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 Akanda Corp and Amgen into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Akanda Corp and Amgen Inc, you can compare the effects of market volatilities on Akanda 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 Akanda Corp with a short position of Amgen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Akanda Corp and Amgen.
Diversification Opportunities for Akanda Corp and Amgen
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Akanda and Amgen is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Akanda Corp and Amgen Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amgen Inc and Akanda 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 Akanda 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 Akanda Corp i.e., Akanda Corp and Amgen go up and down completely randomly.
Pair Corralation between Akanda Corp and Amgen
Given the investment horizon of 90 days Akanda Corp is expected to under-perform the Amgen. In addition to that, Akanda Corp is 3.43 times more volatile than Amgen Inc. It trades about -0.14 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 30,287 in Amgen Inc on September 1, 2024 and sell it today you would lose (2,000) from holding Amgen Inc or give up 6.6% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Akanda Corp vs. Amgen Inc
Performance |
| Timeline |
| Akanda Corp |
| Amgen Inc |
Akanda Corp and Amgen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Akanda Corp and Amgen
The main advantage of trading using opposite Akanda Corp and Amgen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Akanda 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.| Akanda Corp vs. Tff Pharmaceuticals | Akanda Corp vs. Eliem Therapeutics | Akanda Corp vs. Inhibrx | Akanda Corp vs. Enliven Therapeutics |
| Amgen vs. Tff Pharmaceuticals | Amgen vs. Eliem Therapeutics | Amgen vs. Inhibrx | Amgen vs. Enliven Therapeutics |
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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
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