Correlation Between Cadeler AS and Amgen
Can any of the company-specific risk be diversified away by investing in both Cadeler AS and Amgen 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 Cadeler AS and Amgen into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cadeler AS and Amgen Inc, you can compare the effects of market volatilities on Cadeler AS 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 Cadeler AS with a short position of Amgen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cadeler AS and Amgen.
Diversification Opportunities for Cadeler AS and Amgen
-0.62 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Cadeler and Amgen is -0.62. Overlapping area represents the amount of risk that can be diversified away by holding Cadeler AS and Amgen Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amgen Inc and Cadeler AS 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 Cadeler AS 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 Cadeler AS i.e., Cadeler AS and Amgen go up and down completely randomly.
Pair Corralation between Cadeler AS and Amgen
Given the investment horizon of 90 days Cadeler AS is expected to under-perform the Amgen. But the stock apears to be less risky and, when comparing its historical volatility, Cadeler AS is 1.02 times less risky than Amgen. The stock trades about -0.28 of its potential returns per unit of risk. The Amgen Inc is currently generating about 0.24 of returns per unit of risk over similar time horizon. If you would invest 27,805 in Amgen Inc on November 29, 2024 and sell it today you would earn a total of 2,833 from holding Amgen Inc or generate 10.19% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cadeler AS vs. Amgen Inc
Performance |
| Timeline |
| Cadeler AS |
| Amgen Inc |
Cadeler AS and Amgen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cadeler AS and Amgen
The main advantage of trading using opposite Cadeler AS and Amgen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cadeler AS 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.| Cadeler AS vs. Turning Point Brands | Cadeler AS vs. Ardelyx | Cadeler AS vs. Merit Medical Systems | Cadeler AS vs. Cardinal Health |
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 Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
Other Complementary Tools
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance |