Correlation Between Amgen and Corsair Gaming
Can any of the company-specific risk be diversified away by investing in both Amgen and Corsair Gaming 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 Corsair Gaming into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Amgen Inc and Corsair Gaming, you can compare the effects of market volatilities on Amgen and Corsair Gaming 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 Corsair Gaming. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amgen and Corsair Gaming.
Diversification Opportunities for Amgen and Corsair Gaming
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Amgen and Corsair is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Amgen Inc and Corsair Gaming in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Corsair Gaming 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 Corsair Gaming. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Corsair Gaming has no effect on the direction of Amgen i.e., Amgen and Corsair Gaming go up and down completely randomly.
Pair Corralation between Amgen and Corsair Gaming
Given the investment horizon of 90 days Amgen is expected to generate 13.41 times less return on investment than Corsair Gaming. But when comparing it to its historical volatility, Amgen Inc is 2.62 times less risky than Corsair Gaming. It trades about 0.02 of its potential returns per unit of risk. Corsair Gaming is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 637.00 in Corsair Gaming on December 24, 2024 and sell it today you would earn a total of 365.00 from holding Corsair Gaming or generate 57.3% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Amgen Inc vs. Corsair Gaming
Performance |
| Timeline |
| Amgen Inc |
| Corsair Gaming |
Amgen and Corsair Gaming Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amgen and Corsair Gaming
The main advantage of trading using opposite Amgen and Corsair Gaming positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amgen position performs unexpectedly, Corsair Gaming 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 Corsair Gaming will offset losses from the drop in Corsair Gaming's long position.| Amgen vs. Day One Biopharmaceuticals | Amgen vs. Replimune Group | Amgen vs. Mirum Pharmaceuticals | Amgen vs. Rocket Pharmaceuticals |
| Corsair Gaming vs. Clover Health Investments | Corsair Gaming vs. Skillz Platform | Corsair Gaming vs. Fubotv 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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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