Correlation Between Amgen and II-VI Incorporated
Can any of the company-specific risk be diversified away by investing in both Amgen and II-VI Incorporated 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 II-VI Incorporated into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Amgen Inc and II VI Incorporated, you can compare the effects of market volatilities on Amgen and II-VI Incorporated 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 II-VI Incorporated. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amgen and II-VI Incorporated.
Diversification Opportunities for Amgen and II-VI Incorporated
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Amgen and II-VI is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Amgen Inc and II VI Incorporated in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on II-VI Incorporated 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 II-VI Incorporated. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of II-VI Incorporated has no effect on the direction of Amgen i.e., Amgen and II-VI Incorporated go up and down completely randomly.
Pair Corralation between Amgen and II-VI Incorporated
If you would invest 22,187 in Amgen Inc on August 31, 2024 and sell it today you would earn a total of 5,820 from holding Amgen Inc or generate 26.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Amgen Inc vs. II VI Incorporated
Performance |
| Timeline |
| Amgen Inc |
| II-VI Incorporated |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Amgen and II-VI Incorporated Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amgen and II-VI Incorporated
The main advantage of trading using opposite Amgen and II-VI Incorporated positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amgen position performs unexpectedly, II-VI Incorporated 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 II-VI Incorporated will offset losses from the drop in II-VI Incorporated's long position.| Amgen vs. Pfizer Inc | Amgen vs. RLJ Lodging Trust | Amgen vs. Aquagold International | Amgen vs. Stepstone Group |
| II-VI Incorporated vs. Kinsale Capital Group | II-VI Incorporated vs. MGIC Investment Corp | II-VI Incorporated vs. Sun Life Financial | II-VI Incorporated vs. Ecovyst |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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