Correlation Between Amgen and Vitamin Blue
Can any of the company-specific risk be diversified away by investing in both Amgen and Vitamin Blue 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 Vitamin Blue into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Amgen Inc and Vitamin Blue, you can compare the effects of market volatilities on Amgen and Vitamin Blue 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 Vitamin Blue. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amgen and Vitamin Blue.
Diversification Opportunities for Amgen and Vitamin Blue
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Amgen and Vitamin is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Amgen Inc and Vitamin Blue in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vitamin Blue 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 Vitamin Blue. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vitamin Blue has no effect on the direction of Amgen i.e., Amgen and Vitamin Blue go up and down completely randomly.
Pair Corralation between Amgen and Vitamin Blue
If you would invest 22,282 in Amgen Inc on September 12, 2024 and sell it today you would earn a total of 5,293 from holding Amgen Inc or generate 23.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Amgen Inc vs. Vitamin Blue
Performance |
| Timeline |
| Amgen Inc |
| Vitamin Blue |
Amgen and Vitamin Blue Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amgen and Vitamin Blue
The main advantage of trading using opposite Amgen and Vitamin Blue positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amgen position performs unexpectedly, Vitamin Blue 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 Vitamin Blue will offset losses from the drop in Vitamin Blue's long position.| Amgen vs. Victory Integrity Smallmid Cap | Amgen vs. Hilton Worldwide Holdings | Amgen vs. NVIDIA | Amgen vs. JPMorgan Chase Co |
| Vitamin Blue vs. Golden Matrix Group | Vitamin Blue vs. Aquestive Therapeutics | Vitamin Blue vs. Playstudios | Vitamin Blue 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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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