Correlation Between Amgen and Trailblazer Merger
Can any of the company-specific risk be diversified away by investing in both Amgen and Trailblazer Merger 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 Trailblazer Merger into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Amgen Inc and Trailblazer Merger, you can compare the effects of market volatilities on Amgen and Trailblazer Merger 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 Trailblazer Merger. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amgen and Trailblazer Merger.
Diversification Opportunities for Amgen and Trailblazer Merger
-0.3 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Amgen and Trailblazer is -0.3. Overlapping area represents the amount of risk that can be diversified away by holding Amgen Inc and Trailblazer Merger in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Trailblazer Merger 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 Trailblazer Merger. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Trailblazer Merger has no effect on the direction of Amgen i.e., Amgen and Trailblazer Merger go up and down completely randomly.
Pair Corralation between Amgen and Trailblazer Merger
Given the investment horizon of 90 days Amgen is expected to generate 22.84 times less return on investment than Trailblazer Merger. But when comparing it to its historical volatility, Amgen Inc is 10.67 times less risky than Trailblazer Merger. It trades about 0.02 of its potential returns per unit of risk. Trailblazer Merger is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 1,011 in Trailblazer Merger on September 3, 2024 and sell it today you would lose (1,001) from holding Trailblazer Merger or give up 99.01% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 89.05% |
| Values | Daily Returns |
Amgen Inc vs. Trailblazer Merger
Performance |
| Timeline |
| Amgen Inc |
| Trailblazer Merger |
Amgen and Trailblazer Merger Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amgen and Trailblazer Merger
The main advantage of trading using opposite Amgen and Trailblazer Merger positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amgen position performs unexpectedly, Trailblazer Merger 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 Trailblazer Merger will offset losses from the drop in Trailblazer Merger's long position.| Amgen vs. Pfizer Inc | Amgen vs. Johnson Johnson | Amgen vs. Highway Holdings Limited | Amgen vs. QCR Holdings |
| Trailblazer Merger vs. Sanyo Special Steel | Trailblazer Merger vs. Tianjin Capital Environmental | Trailblazer Merger vs. Where Food Comes | Trailblazer Merger vs. ServiceNow |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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