Correlation Between Estrella Immunopharma and Amgen
Can any of the company-specific risk be diversified away by investing in both Estrella Immunopharma 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 Estrella Immunopharma and Amgen into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Estrella Immunopharma and Amgen Inc, you can compare the effects of market volatilities on Estrella Immunopharma 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 Estrella Immunopharma with a short position of Amgen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Estrella Immunopharma and Amgen.
Diversification Opportunities for Estrella Immunopharma and Amgen
-0.32 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Estrella and Amgen is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding Estrella Immunopharma and Amgen Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amgen Inc and Estrella Immunopharma 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 Estrella Immunopharma 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 Estrella Immunopharma i.e., Estrella Immunopharma and Amgen go up and down completely randomly.
Pair Corralation between Estrella Immunopharma and Amgen
Assuming the 90 days horizon Estrella Immunopharma is expected to generate 26.11 times more return on investment than Amgen. However, Estrella Immunopharma is 26.11 times more volatile than Amgen Inc. It trades about 0.44 of its potential returns per unit of risk. Amgen Inc is currently generating about -0.22 per unit of risk. If you would invest 4.01 in Estrella Immunopharma on August 29, 2024 and sell it today you would earn a total of 5.09 from holding Estrella Immunopharma or generate 126.93% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 21.74% |
| Values | Daily Returns |
Estrella Immunopharma vs. Amgen Inc
Performance |
| Timeline |
| Estrella Immunopharma |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
OK
| Amgen Inc |
Estrella Immunopharma and Amgen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Estrella Immunopharma and Amgen
The main advantage of trading using opposite Estrella Immunopharma and Amgen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Estrella Immunopharma 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.| Estrella Immunopharma vs. Bright Minds Biosciences | Estrella Immunopharma vs. HP Inc | Estrella Immunopharma vs. Intel | Estrella Immunopharma vs. Chevron Corp |
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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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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