Correlation Between Amgen and China Aircraft
Can any of the company-specific risk be diversified away by investing in both Amgen and China Aircraft 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 China Aircraft into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Amgen Inc and China Aircraft Leasing, you can compare the effects of market volatilities on Amgen and China Aircraft 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 China Aircraft. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amgen and China Aircraft.
Diversification Opportunities for Amgen and China Aircraft
-0.05 | Correlation Coefficient |
Good diversification
The 3 months correlation between Amgen and China is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding Amgen Inc and China Aircraft Leasing in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Aircraft Leasing 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 China Aircraft. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Aircraft Leasing has no effect on the direction of Amgen i.e., Amgen and China Aircraft go up and down completely randomly.
Pair Corralation between Amgen and China Aircraft
If you would invest 40.00 in China Aircraft Leasing on August 30, 2024 and sell it today you would earn a total of 0.00 from holding China Aircraft Leasing or generate 0.0% 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. China Aircraft Leasing
Performance |
| Timeline |
| Amgen Inc |
| China Aircraft Leasing |
Amgen and China Aircraft Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amgen and China Aircraft
The main advantage of trading using opposite Amgen and China Aircraft positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amgen position performs unexpectedly, China Aircraft 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 China Aircraft will offset losses from the drop in China Aircraft's long position.| Amgen vs. Ikena Oncology | Amgen vs. Eliem Therapeutics | Amgen vs. HCW Biologics | Amgen vs. Tempest Therapeutics |
| China Aircraft vs. Joint Stock | China Aircraft vs. American Eagle Outfitters | China Aircraft vs. Cadence Design Systems | China Aircraft vs. Qualys 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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
Other Complementary Tools
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Commodity Directory Find actively traded commodities issued by global exchanges |