Correlation Between Amgen and NISOURCE
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By analyzing existing cross correlation between Amgen Inc and NISOURCE FIN P, you can compare the effects of market volatilities on Amgen and NISOURCE 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 NISOURCE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amgen and NISOURCE.
Diversification Opportunities for Amgen and NISOURCE
Weak diversification
The 3 months correlation between Amgen and NISOURCE is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding Amgen Inc and NISOURCE FIN P in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NISOURCE FIN P 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 NISOURCE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NISOURCE FIN P has no effect on the direction of Amgen i.e., Amgen and NISOURCE go up and down completely randomly.
Pair Corralation between Amgen and NISOURCE
Given the investment horizon of 90 days Amgen is expected to generate 391.83 times less return on investment than NISOURCE. But when comparing it to its historical volatility, Amgen Inc is 77.72 times less risky than NISOURCE. It trades about 0.02 of its potential returns per unit of risk. NISOURCE FIN P is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 7,879 in NISOURCE FIN P on September 12, 2024 and sell it today you would earn a total of 179.00 from holding NISOURCE FIN P or generate 2.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 61.82% |
| Values | Daily Returns |
Amgen Inc vs. NISOURCE FIN P
Performance |
| Timeline |
| Amgen Inc |
| NISOURCE FIN P |
Amgen and NISOURCE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amgen and NISOURCE
The main advantage of trading using opposite Amgen and NISOURCE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amgen position performs unexpectedly, NISOURCE 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 NISOURCE will offset losses from the drop in NISOURCE's long position.| Amgen vs. Victory Integrity Smallmid Cap | Amgen vs. Hilton Worldwide Holdings | Amgen vs. NVIDIA | Amgen vs. JPMorgan Chase Co |
| NISOURCE vs. Century Aluminum | NISOURCE vs. CECO Environmental Corp | NISOURCE vs. Amgen Inc | NISOURCE vs. Tianjin Capital Environmental |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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