Correlation Between Amgen and Veea
Can any of the company-specific risk be diversified away by investing in both Amgen and Veea 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 Veea into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Amgen Inc and Veea Inc, you can compare the effects of market volatilities on Amgen and Veea 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 Veea. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amgen and Veea.
Diversification Opportunities for Amgen and Veea
Poor diversification
The 3 months correlation between Amgen and Veea is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding Amgen Inc and Veea Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Veea Inc 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 Veea. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Veea Inc has no effect on the direction of Amgen i.e., Amgen and Veea go up and down completely randomly.
Pair Corralation between Amgen and Veea
Given the investment horizon of 90 days Amgen Inc is expected to under-perform the Veea. But the stock apears to be less risky and, when comparing its historical volatility, Amgen Inc is 4.2 times less risky than Veea. The stock trades about -0.23 of its potential returns per unit of risk. The Veea Inc is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 286.00 in Veea Inc on September 14, 2024 and sell it today you would earn a total of 46.00 from holding Veea Inc or generate 16.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Amgen Inc vs. Veea Inc
Performance |
| Timeline |
| Amgen Inc |
| Veea Inc |
Amgen and Veea Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amgen and Veea
The main advantage of trading using opposite Amgen and Veea positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amgen position performs unexpectedly, Veea 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 Veea will offset losses from the drop in Veea's long position.| Amgen vs. Puma Biotechnology | Amgen vs. Iovance Biotherapeutics | Amgen vs. Sarepta Therapeutics | Amgen vs. Day One Biopharmaceuticals |
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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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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