Correlation Between Amgen and Pulmatrix
Can any of the company-specific risk be diversified away by investing in both Amgen and Pulmatrix 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 Pulmatrix into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Amgen Inc and Pulmatrix, you can compare the effects of market volatilities on Amgen and Pulmatrix 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 Pulmatrix. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amgen and Pulmatrix.
Diversification Opportunities for Amgen and Pulmatrix
Pay attention - limited upside
The 3 months correlation between Amgen and Pulmatrix is -0.85. Overlapping area represents the amount of risk that can be diversified away by holding Amgen Inc and Pulmatrix in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pulmatrix 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 Pulmatrix. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pulmatrix has no effect on the direction of Amgen i.e., Amgen and Pulmatrix go up and down completely randomly.
Pair Corralation between Amgen and Pulmatrix
Given the investment horizon of 90 days Amgen Inc is expected to under-perform the Pulmatrix. But the stock apears to be less risky and, when comparing its historical volatility, Amgen Inc is 8.41 times less risky than Pulmatrix. The stock trades about -0.22 of its potential returns per unit of risk. The Pulmatrix is currently generating about 0.34 of returns per unit of risk over similar time horizon. If you would invest 209.00 in Pulmatrix on August 29, 2024 and sell it today you would earn a total of 420.00 from holding Pulmatrix or generate 200.96% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Amgen Inc vs. Pulmatrix
Performance |
| Timeline |
| Amgen Inc |
| Pulmatrix |
Amgen and Pulmatrix Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amgen and Pulmatrix
The main advantage of trading using opposite Amgen and Pulmatrix positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amgen position performs unexpectedly, Pulmatrix 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 Pulmatrix will offset losses from the drop in Pulmatrix's long position.| Amgen vs. Eliem Therapeutics | Amgen vs. Scpharmaceuticals | Amgen vs. Milestone Pharmaceuticals | Amgen vs. Seres Therapeutics |
| Pulmatrix vs. Capricor Therapeutics | Pulmatrix vs. Soleno Therapeutics | Pulmatrix vs. Bio Path Holdings | Pulmatrix vs. Moleculin Biotech |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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