Correlation Between Amgen and Condor Resources
Can any of the company-specific risk be diversified away by investing in both Amgen and Condor Resources 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 Condor Resources into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Amgen Inc and Condor Resources, you can compare the effects of market volatilities on Amgen and Condor Resources 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 Condor Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amgen and Condor Resources.
Diversification Opportunities for Amgen and Condor Resources
0.31 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Amgen and Condor is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding Amgen Inc and Condor Resources in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Condor Resources 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 Condor Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Condor Resources has no effect on the direction of Amgen i.e., Amgen and Condor Resources go up and down completely randomly.
Pair Corralation between Amgen and Condor Resources
Given the investment horizon of 90 days Amgen is expected to generate 1.14 times less return on investment than Condor Resources. But when comparing it to its historical volatility, Amgen Inc is 7.17 times less risky than Condor Resources. It trades about 0.21 of its potential returns per unit of risk. Condor Resources is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 9.00 in Condor Resources on October 20, 2024 and sell it today you would earn a total of 0.00 from holding Condor Resources or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Amgen Inc vs. Condor Resources
Performance |
| Timeline |
| Amgen Inc |
| Condor Resources |
Amgen and Condor Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amgen and Condor Resources
The main advantage of trading using opposite Amgen and Condor Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amgen position performs unexpectedly, Condor Resources 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 Condor Resources will offset losses from the drop in Condor Resources' long position.| Amgen vs. Agilent Technologies | Amgen vs. Equillium | Amgen vs. 23Andme Holding Co | Amgen vs. DiaMedica Therapeutics |
| Condor Resources vs. Arhaus Inc | Condor Resources vs. Malaga Financial | Condor Resources vs. Bankwell Financial Group | Condor Resources vs. Glacier Bancorp |
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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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