Correlation Between Amgen and Super Sol
Can any of the company-specific risk be diversified away by investing in both Amgen and Super Sol 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 Super Sol into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Amgen Inc and Super Sol, you can compare the effects of market volatilities on Amgen and Super Sol 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 Super Sol. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amgen and Super Sol.
Diversification Opportunities for Amgen and Super Sol
Pay attention - limited upside
The 3 months correlation between Amgen and Super is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Amgen Inc and Super Sol in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Super Sol 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 Super Sol. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Super Sol has no effect on the direction of Amgen i.e., Amgen and Super Sol go up and down completely randomly.
Pair Corralation between Amgen and Super Sol
If you would invest (100.00) in Super Sol on September 2, 2024 and sell it today you would earn a total of 100.00 from holding Super Sol or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Amgen Inc vs. Super Sol
Performance |
| Timeline |
| Amgen Inc |
| Super Sol |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Amgen and Super Sol Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amgen and Super Sol
The main advantage of trading using opposite Amgen and Super Sol positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amgen position performs unexpectedly, Super Sol 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 Super Sol will offset losses from the drop in Super Sol's long position.The idea behind Amgen Inc and Super Sol pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Super Sol vs. Steven Madden | Super Sol vs. Playstudios | Super Sol vs. Wicket Gaming AB | Super Sol vs. Boyd Gaming |
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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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