Correlation Between Amgen and Sorrento Therapeutics
Can any of the company-specific risk be diversified away by investing in both Amgen and Sorrento Therapeutics 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 Sorrento Therapeutics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Amgen Inc and Sorrento Therapeutics, you can compare the effects of market volatilities on Amgen and Sorrento Therapeutics 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 Sorrento Therapeutics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amgen and Sorrento Therapeutics.
Diversification Opportunities for Amgen and Sorrento Therapeutics
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Amgen and Sorrento is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Amgen Inc and Sorrento Therapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sorrento Therapeutics 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 Sorrento Therapeutics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sorrento Therapeutics has no effect on the direction of Amgen i.e., Amgen and Sorrento Therapeutics go up and down completely randomly.
Pair Corralation between Amgen and Sorrento Therapeutics
If you would invest 25,757 in Amgen Inc on September 14, 2024 and sell it today you would earn a total of 1,306 from holding Amgen Inc or generate 5.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Amgen Inc vs. Sorrento Therapeutics
Performance |
| Timeline |
| Amgen Inc |
| Sorrento Therapeutics |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Amgen and Sorrento Therapeutics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amgen and Sorrento Therapeutics
The main advantage of trading using opposite Amgen and Sorrento Therapeutics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amgen position performs unexpectedly, Sorrento Therapeutics 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 Sorrento Therapeutics will offset losses from the drop in Sorrento Therapeutics' long position.| Amgen vs. Puma Biotechnology | Amgen vs. Iovance Biotherapeutics | Amgen vs. Day One Biopharmaceuticals | Amgen vs. Inozyme Pharma |
| Sorrento Therapeutics vs. Todos Medical | Sorrento Therapeutics vs. Amgen Inc | Sorrento Therapeutics vs. Tower One Wireless | Sorrento Therapeutics vs. Acco Brands |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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