Correlation Between Amgen and Nukkleus
Can any of the company-specific risk be diversified away by investing in both Amgen and Nukkleus 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 Nukkleus into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Amgen Inc and Nukkleus, you can compare the effects of market volatilities on Amgen and Nukkleus 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 Nukkleus. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amgen and Nukkleus.
Diversification Opportunities for Amgen and Nukkleus
Significant diversification
The 3 months correlation between Amgen and Nukkleus is 0.02. Overlapping area represents the amount of risk that can be diversified away by holding Amgen Inc and Nukkleus in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nukkleus 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 Nukkleus. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nukkleus has no effect on the direction of Amgen i.e., Amgen and Nukkleus go up and down completely randomly.
Pair Corralation between Amgen and Nukkleus
Given the investment horizon of 90 days Amgen Inc is expected to generate 0.08 times more return on investment than Nukkleus. However, Amgen Inc is 12.8 times less risky than Nukkleus. It trades about 0.02 of its potential returns per unit of risk. Nukkleus is currently generating about 0.0 per unit of risk. If you would invest 24,710 in Amgen Inc on September 14, 2024 and sell it today you would earn a total of 2,696 from holding Amgen Inc or generate 10.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 49.8% |
| Values | Daily Returns |
Amgen Inc vs. Nukkleus
Performance |
| Timeline |
| Amgen Inc |
| Nukkleus |
Amgen and Nukkleus Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amgen and Nukkleus
The main advantage of trading using opposite Amgen and Nukkleus positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amgen position performs unexpectedly, Nukkleus 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 Nukkleus will offset losses from the drop in Nukkleus' long position.| Amgen vs. Puma Biotechnology | Amgen vs. Iovance Biotherapeutics | Amgen vs. Day One Biopharmaceuticals | Amgen vs. Inozyme Pharma |
| Nukkleus vs. Zijin Mining Group | Nukkleus vs. JD Sports Fashion | Nukkleus vs. Stepan Company | Nukkleus vs. Old Dominion Freight |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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