Correlation Between Vita Coco and AMGEN
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By analyzing existing cross correlation between Vita Coco and AMGEN INC, you can compare the effects of market volatilities on Vita Coco 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 Vita Coco with a short position of AMGEN. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vita Coco and AMGEN.
Diversification Opportunities for Vita Coco and AMGEN
Pay attention - limited upside
The 3 months correlation between Vita and AMGEN is -0.86. Overlapping area represents the amount of risk that can be diversified away by holding Vita Coco and AMGEN INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AMGEN INC and Vita Coco 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 Vita Coco 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 Vita Coco i.e., Vita Coco and AMGEN go up and down completely randomly.
Pair Corralation between Vita Coco and AMGEN
Given the investment horizon of 90 days Vita Coco is expected to generate 1.32 times more return on investment than AMGEN. However, Vita Coco is 1.32 times more volatile than AMGEN INC. It trades about 0.2 of its potential returns per unit of risk. AMGEN INC is currently generating about -0.06 per unit of risk. If you would invest 3,516 in Vita Coco on September 13, 2024 and sell it today you would earn a total of 239.00 from holding Vita Coco or generate 6.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 63.64% |
| Values | Daily Returns |
Vita Coco vs. AMGEN INC
Performance |
| Timeline |
| Vita Coco |
| AMGEN INC |
Vita Coco and AMGEN Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Vita Coco and AMGEN
The main advantage of trading using opposite Vita Coco and AMGEN positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vita Coco 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.| Vita Coco vs. Coca Cola Femsa SAB | Vita Coco vs. Keurig Dr Pepper | Vita Coco vs. Embotelladora Andina SA | Vita Coco vs. Coca Cola European Partners |
| AMGEN vs. Oatly Group AB | AMGEN vs. Perseus Mining Limited | AMGEN vs. Monster Beverage Corp | AMGEN vs. Forsys Metals Corp |
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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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