Correlation Between CDW Corp and AMGEN
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By analyzing existing cross correlation between CDW Corp and AMGEN INC, you can compare the effects of market volatilities on CDW Corp 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 CDW Corp with a short position of AMGEN. Check out your portfolio center. Please also check ongoing floating volatility patterns of CDW Corp and AMGEN.
Diversification Opportunities for CDW Corp and AMGEN
Very weak diversification
The 3 months correlation between CDW and AMGEN is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding CDW Corp and AMGEN INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AMGEN INC and CDW Corp 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 CDW Corp 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 CDW Corp i.e., CDW Corp and AMGEN go up and down completely randomly.
Pair Corralation between CDW Corp and AMGEN
Considering the 90-day investment horizon CDW Corp is expected to under-perform the AMGEN. In addition to that, CDW Corp is 6.04 times more volatile than AMGEN INC. It trades about -0.04 of its total potential returns per unit of risk. AMGEN INC is currently generating about 0.02 per unit of volatility. If you would invest 9,112 in AMGEN INC on September 14, 2024 and sell it today you would earn a total of 153.00 from holding AMGEN INC or generate 1.68% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.63% |
| Values | Daily Returns |
CDW Corp vs. AMGEN INC
Performance |
| Timeline |
| CDW Corp |
| AMGEN INC |
CDW Corp and AMGEN Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CDW Corp and AMGEN
The main advantage of trading using opposite CDW Corp and AMGEN positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CDW Corp 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.| CDW Corp vs. CACI International | CDW Corp vs. Jack Henry Associates | CDW Corp vs. Broadridge Financial Solutions | CDW Corp vs. ExlService 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 Anywhere module to track or share privately all of your investments from the convenience of any device.
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