Correlation Between EON Resources and Amgen
Can any of the company-specific risk be diversified away by investing in both EON Resources 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 EON Resources and Amgen into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between EON Resources and Amgen Inc, you can compare the effects of market volatilities on EON Resources 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 EON Resources with a short position of Amgen. Check out your portfolio center. Please also check ongoing floating volatility patterns of EON Resources and Amgen.
Diversification Opportunities for EON Resources and Amgen
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between EON and Amgen is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding EON Resources and Amgen Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amgen Inc and EON Resources 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 EON Resources 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 EON Resources i.e., EON Resources and Amgen go up and down completely randomly.
Pair Corralation between EON Resources and Amgen
Given the investment horizon of 90 days EON Resources is expected to generate 10.25 times more return on investment than Amgen. However, EON Resources is 10.25 times more volatile than Amgen Inc. It trades about 0.0 of its potential returns per unit of risk. Amgen Inc is currently generating about -0.13 per unit of risk. If you would invest 156.00 in EON Resources on September 3, 2024 and sell it today you would lose (76.00) from holding EON Resources or give up 48.72% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
EON Resources vs. Amgen Inc
Performance |
| Timeline |
| EON Resources |
| Amgen Inc |
EON Resources and Amgen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with EON Resources and Amgen
The main advantage of trading using opposite EON Resources and Amgen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if EON Resources 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.| EON Resources vs. Brunswick | EON Resources vs. NI Holdings | EON Resources vs. Planet Fitness | EON Resources vs. Life Time Group |
| Amgen vs. Pfizer Inc | Amgen vs. Johnson Johnson | Amgen vs. Highway Holdings Limited | Amgen vs. QCR 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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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