Correlation Between Digi International and AMGEN
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By analyzing existing cross correlation between Digi International and AMGEN INC, you can compare the effects of market volatilities on Digi International 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 Digi International with a short position of AMGEN. Check out your portfolio center. Please also check ongoing floating volatility patterns of Digi International and AMGEN.
Diversification Opportunities for Digi International and AMGEN
-0.59 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Digi and AMGEN is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding Digi International and AMGEN INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AMGEN INC and Digi International 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 Digi International 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 Digi International i.e., Digi International and AMGEN go up and down completely randomly.
Pair Corralation between Digi International and AMGEN
Given the investment horizon of 90 days Digi International is expected to generate 1.25 times more return on investment than AMGEN. However, Digi International is 1.25 times more volatile than AMGEN INC. It trades about 0.13 of its potential returns per unit of risk. AMGEN INC is currently generating about -0.08 per unit of risk. If you would invest 3,197 in Digi International on September 14, 2024 and sell it today you would earn a total of 136.00 from holding Digi International or generate 4.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Digi International vs. AMGEN INC
Performance |
| Timeline |
| Digi International |
| AMGEN INC |
Digi International and AMGEN Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Digi International and AMGEN
The main advantage of trading using opposite Digi International and AMGEN positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Digi International 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.| Digi International vs. Passage Bio | Digi International vs. Black Diamond Therapeutics | Digi International vs. Alector | Digi International vs. Century Therapeutics |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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