Correlation Between Amgen and Cementos Pacasmayo
Can any of the company-specific risk be diversified away by investing in both Amgen and Cementos Pacasmayo 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 Cementos Pacasmayo into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Amgen Inc and Cementos Pacasmayo SAA, you can compare the effects of market volatilities on Amgen and Cementos Pacasmayo 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 Cementos Pacasmayo. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amgen and Cementos Pacasmayo.
Diversification Opportunities for Amgen and Cementos Pacasmayo
-0.48 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Amgen and Cementos is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding Amgen Inc and Cementos Pacasmayo SAA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cementos Pacasmayo SAA 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 Cementos Pacasmayo. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cementos Pacasmayo SAA has no effect on the direction of Amgen i.e., Amgen and Cementos Pacasmayo go up and down completely randomly.
Pair Corralation between Amgen and Cementos Pacasmayo
Given the investment horizon of 90 days Amgen Inc is expected to generate 0.81 times more return on investment than Cementos Pacasmayo. However, Amgen Inc is 1.23 times less risky than Cementos Pacasmayo. It trades about -0.23 of its potential returns per unit of risk. Cementos Pacasmayo SAA is currently generating about -0.19 per unit of risk. If you would invest 31,762 in Amgen Inc on September 1, 2024 and sell it today you would lose (3,475) from holding Amgen Inc or give up 10.94% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Amgen Inc vs. Cementos Pacasmayo SAA
Performance |
| Timeline |
| Amgen Inc |
| Cementos Pacasmayo SAA |
Amgen and Cementos Pacasmayo Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amgen and Cementos Pacasmayo
The main advantage of trading using opposite Amgen and Cementos Pacasmayo positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amgen position performs unexpectedly, Cementos Pacasmayo 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 Cementos Pacasmayo will offset losses from the drop in Cementos Pacasmayo's long position.| Amgen vs. Tff Pharmaceuticals | Amgen vs. Eliem Therapeutics | Amgen vs. Inhibrx | Amgen vs. Enliven Therapeutics |
| Cementos Pacasmayo vs. Summit Materials | Cementos Pacasmayo vs. Eagle Materials | Cementos Pacasmayo vs. United States Lime | Cementos Pacasmayo vs. James Hardie Industries |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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