Correlation Between Amgen and 04010LAZ6

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Amgen and 04010LAZ6 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 04010LAZ6 into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Amgen Inc and ARES CAPITAL PORATION, you can compare the effects of market volatilities on Amgen and 04010LAZ6 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 04010LAZ6. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amgen and 04010LAZ6.

Diversification Opportunities for Amgen and 04010LAZ6

0.58
  Correlation Coefficient

Very weak diversification

The 3 months correlation between Amgen and 04010LAZ6 is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding Amgen Inc and ARES CAPITAL PORATION in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ARES CAPITAL PORATION 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 04010LAZ6. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ARES CAPITAL PORATION has no effect on the direction of Amgen i.e., Amgen and 04010LAZ6 go up and down completely randomly.

Pair Corralation between Amgen and 04010LAZ6

Given the investment horizon of 90 days Amgen Inc is expected to generate 2.52 times more return on investment than 04010LAZ6. However, Amgen is 2.52 times more volatile than ARES CAPITAL PORATION. It trades about 0.01 of its potential returns per unit of risk. ARES CAPITAL PORATION is currently generating about -0.01 per unit of risk. If you would invest  27,027  in Amgen Inc on September 14, 2024 and sell it today you would earn a total of  38.00  from holding Amgen Inc or generate 0.14% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthWeak
Accuracy98.39%
ValuesDaily Returns

Amgen Inc  vs.  ARES CAPITAL PORATION

 Performance 
       Timeline  
Amgen Inc 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days Amgen Inc has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of inconsistent performance in the last few months, the Stock's technical and fundamental indicators remain very healthy which may send shares a bit higher in January 2025. The recent disarray may also be a sign of long period up-swing for the firm investors.
ARES CAPITAL PORATION 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days ARES CAPITAL PORATION has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, 04010LAZ6 is not utilizing all of its potentials. The newest stock price disturbance, may contribute to short-term losses for the investors.

Amgen and 04010LAZ6 Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Amgen and 04010LAZ6

The main advantage of trading using opposite Amgen and 04010LAZ6 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amgen position performs unexpectedly, 04010LAZ6 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 04010LAZ6 will offset losses from the drop in 04010LAZ6's long position.
Amgen vs. Puma Biotechnology
Amgen vs. Iovance Biotherapeutics
Amgen vs. Day One Biopharmaceuticals
Amgen vs. Inozyme Pharma
The idea behind Amgen Inc and ARES CAPITAL PORATION 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.
04010LAZ6 vs. Xtant Medical Holdings
04010LAZ6 vs. Aquestive Therapeutics
04010LAZ6 vs. Delta Air Lines
04010LAZ6 vs. Amgen Inc
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.

Other Complementary Tools

Options Analysis
Analyze and evaluate options and option chains as a potential hedge for your portfolios
Funds Screener
Find actively-traded funds from around the world traded on over 30 global exchanges
Portfolio Dashboard
Portfolio dashboard that provides centralized access to all your investments
Portfolio Optimization
Compute new portfolio that will generate highest expected return given your specified tolerance for risk
Stock Tickers
Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites


 
Macroaxis helps investors of all levels and skills to maximize the upside of all their holdings and minimize the risk associated with market volatility, economic swings, and company-specific events. View terms and conditions
 
Feedback Blog
Made with optimal in San Francisco
2024 Macroaxis LLC
COMMON DESTINATIONS
MAIN CATEGORIES
COMPANY