Correlation Between Applied Blockchain and AMGEN
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By analyzing existing cross correlation between Applied Blockchain and AMGEN INC, you can compare the effects of market volatilities on Applied Blockchain and AMGEN 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 Applied Blockchain with a short position of AMGEN. Check out your portfolio center. Please also check ongoing floating volatility patterns of Applied Blockchain and AMGEN.
Diversification Opportunities for Applied Blockchain and AMGEN
-0.74 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Applied and AMGEN is -0.74. Overlapping area represents the amount of risk that can be diversified away by holding Applied Blockchain and AMGEN INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AMGEN INC and Applied Blockchain 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 Applied Blockchain are associated (or correlated) with AMGEN. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AMGEN INC has no effect on the direction of Applied Blockchain i.e., Applied Blockchain and AMGEN go up and down completely randomly.
Pair Corralation between Applied Blockchain and AMGEN
Given the investment horizon of 90 days Applied Blockchain is expected to generate 10.11 times more return on investment than AMGEN. However, Applied Blockchain is 10.11 times more volatile than AMGEN INC. It trades about 0.05 of its potential returns per unit of risk. AMGEN INC is currently generating about -0.01 per unit of risk. If you would invest 676.00 in Applied Blockchain on September 14, 2024 and sell it today you would earn a total of 226.50 from holding Applied Blockchain or generate 33.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 98.8% |
| Values | Daily Returns |
Applied Blockchain vs. AMGEN INC
Performance |
| Timeline |
| Applied Blockchain |
| AMGEN INC |
Applied Blockchain and AMGEN Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Applied Blockchain and AMGEN
The main advantage of trading using opposite Applied Blockchain and AMGEN positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Applied Blockchain position performs unexpectedly, AMGEN 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 AMGEN will offset losses from the drop in AMGEN's long position.| Applied Blockchain vs. Magic Empire Global | Applied Blockchain vs. Zhong Yang Financial | Applied Blockchain vs. Netcapital | Applied Blockchain vs. Lazard |
| AMGEN vs. AEP TEX INC | AMGEN vs. US BANK NATIONAL | AMGEN vs. Applied Blockchain | AMGEN vs. BigBearai Holdings |
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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