Correlation Between Amgen and Vince Holding
Can any of the company-specific risk be diversified away by investing in both Amgen and Vince Holding 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 Vince Holding into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Amgen Inc and Vince Holding Corp, you can compare the effects of market volatilities on Amgen and Vince Holding 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 Vince Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amgen and Vince Holding.
Diversification Opportunities for Amgen and Vince Holding
0.43 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Amgen and Vince is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding Amgen Inc and Vince Holding Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vince Holding Corp 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 Vince Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vince Holding Corp has no effect on the direction of Amgen i.e., Amgen and Vince Holding go up and down completely randomly.
Pair Corralation between Amgen and Vince Holding
Given the investment horizon of 90 days Amgen is expected to generate 5.94 times less return on investment than Vince Holding. But when comparing it to its historical volatility, Amgen Inc is 4.45 times less risky than Vince Holding. It trades about 0.04 of its potential returns per unit of risk. Vince Holding Corp is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 125.00 in Vince Holding Corp on August 26, 2024 and sell it today you would earn a total of 45.00 from holding Vince Holding Corp or generate 36.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Amgen Inc vs. Vince Holding Corp
Performance |
| Timeline |
| Amgen Inc |
| Vince Holding Corp |
Amgen and Vince Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amgen and Vince Holding
The main advantage of trading using opposite Amgen and Vince Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amgen position performs unexpectedly, Vince Holding 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 Vince Holding will offset losses from the drop in Vince Holding's long position.| Amgen vs. Eliem Therapeutics | Amgen vs. HCW Biologics | Amgen vs. Scpharmaceuticals | Amgen vs. Milestone Pharmaceuticals |
| Vince Holding vs. VF Corporation | Vince Holding vs. Levi Strauss Co | Vince Holding vs. Under Armour A | Vince Holding vs. Oxford Industries |
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 Stocks Directory module to find actively traded stocks across global markets.
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