Correlation Between ClearOne and Amgen
Can any of the company-specific risk be diversified away by investing in both ClearOne 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 ClearOne and Amgen into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ClearOne and Amgen Inc, you can compare the effects of market volatilities on ClearOne 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 ClearOne with a short position of Amgen. Check out your portfolio center. Please also check ongoing floating volatility patterns of ClearOne and Amgen.
Diversification Opportunities for ClearOne and Amgen
Poor diversification
The 3 months correlation between ClearOne and Amgen is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding ClearOne and Amgen Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amgen Inc and ClearOne 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 ClearOne 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 ClearOne i.e., ClearOne and Amgen go up and down completely randomly.
Pair Corralation between ClearOne and Amgen
Given the investment horizon of 90 days ClearOne is expected to generate 2.05 times more return on investment than Amgen. However, ClearOne is 2.05 times more volatile than Amgen Inc. It trades about 0.06 of its potential returns per unit of risk. Amgen Inc is currently generating about -0.3 per unit of risk. If you would invest 56.00 in ClearOne on September 12, 2024 and sell it today you would earn a total of 2.50 from holding ClearOne or generate 4.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
ClearOne vs. Amgen Inc
Performance |
| Timeline |
| ClearOne |
| Amgen Inc |
ClearOne and Amgen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ClearOne and Amgen
The main advantage of trading using opposite ClearOne and Amgen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ClearOne 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.| ClearOne vs. Actelis Networks | ClearOne vs. Siyata Mobile | ClearOne vs. SatixFy Communications | ClearOne vs. Mobilicom Limited American |
| Amgen vs. Victory Integrity Smallmid Cap | Amgen vs. Hilton Worldwide Holdings | Amgen vs. NVIDIA | Amgen vs. JPMorgan Chase Co |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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