Correlation Between Amgen and CSPC PHARMACEUTGR
Can any of the company-specific risk be diversified away by investing in both Amgen and CSPC PHARMACEUTGR 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 Amgen and CSPC PHARMACEUTGR into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Amgen Inc and CSPC PHARMACEUTGR ADR4, you can compare the effects of market volatilities on Amgen and CSPC PHARMACEUTGR 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 Amgen with a short position of CSPC PHARMACEUTGR. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amgen and CSPC PHARMACEUTGR.
Diversification Opportunities for Amgen and CSPC PHARMACEUTGR
-0.18 | Correlation Coefficient |
Good diversification
The 3 months correlation between Amgen and CSPC is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding Amgen Inc and CSPC PHARMACEUTGR ADR4 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CSPC PHARMACEUTGR ADR4 and Amgen 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 Amgen Inc are associated (or correlated) with CSPC PHARMACEUTGR. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CSPC PHARMACEUTGR ADR4 has no effect on the direction of Amgen i.e., Amgen and CSPC PHARMACEUTGR go up and down completely randomly.
Pair Corralation between Amgen and CSPC PHARMACEUTGR
Assuming the 90 days horizon Amgen Inc is expected to generate 0.47 times more return on investment than CSPC PHARMACEUTGR. However, Amgen Inc is 2.13 times less risky than CSPC PHARMACEUTGR. It trades about 0.05 of its potential returns per unit of risk. CSPC PHARMACEUTGR ADR4 is currently generating about -0.01 per unit of risk. If you would invest 23,360 in Amgen Inc on August 25, 2024 and sell it today you would earn a total of 4,350 from holding Amgen Inc or generate 18.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Amgen Inc vs. CSPC PHARMACEUTGR ADR4
Performance |
| Timeline |
| Amgen Inc |
| CSPC PHARMACEUTGR ADR4 |
Amgen and CSPC PHARMACEUTGR Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amgen and CSPC PHARMACEUTGR
The main advantage of trading using opposite Amgen and CSPC PHARMACEUTGR positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amgen position performs unexpectedly, CSPC PHARMACEUTGR 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 CSPC PHARMACEUTGR will offset losses from the drop in CSPC PHARMACEUTGR's long position.| Amgen vs. Playtech plc | Amgen vs. Playa Hotels Resorts | Amgen vs. GREENX METALS LTD | Amgen vs. JD SPORTS FASH |
| CSPC PHARMACEUTGR vs. Johnson Johnson | CSPC PHARMACEUTGR vs. Merck Co | CSPC PHARMACEUTGR vs. Roche Holding Ltd | CSPC PHARMACEUTGR vs. Amgen Inc |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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