Correlation Between GLOBUS MEDICAL and Amgen
Can any of the company-specific risk be diversified away by investing in both GLOBUS MEDICAL 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 GLOBUS MEDICAL and Amgen into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GLOBUS MEDICAL A and Amgen Inc, you can compare the effects of market volatilities on GLOBUS MEDICAL 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 GLOBUS MEDICAL with a short position of Amgen. Check out your portfolio center. Please also check ongoing floating volatility patterns of GLOBUS MEDICAL and Amgen.
Diversification Opportunities for GLOBUS MEDICAL and Amgen
-0.64 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between GLOBUS and Amgen is -0.64. Overlapping area represents the amount of risk that can be diversified away by holding GLOBUS MEDICAL A and Amgen Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amgen Inc and GLOBUS MEDICAL 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 GLOBUS MEDICAL A 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 GLOBUS MEDICAL i.e., GLOBUS MEDICAL and Amgen go up and down completely randomly.
Pair Corralation between GLOBUS MEDICAL and Amgen
Assuming the 90 days trading horizon GLOBUS MEDICAL A is expected to generate 2.27 times more return on investment than Amgen. However, GLOBUS MEDICAL is 2.27 times more volatile than Amgen Inc. It trades about 0.29 of its potential returns per unit of risk. Amgen Inc is currently generating about 0.31 per unit of risk. If you would invest 8,050 in GLOBUS MEDICAL A on October 25, 2024 and sell it today you would earn a total of 750.00 from holding GLOBUS MEDICAL A or generate 9.32% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
GLOBUS MEDICAL A vs. Amgen Inc
Performance |
| Timeline |
| GLOBUS MEDICAL A |
| Amgen Inc |
GLOBUS MEDICAL and Amgen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GLOBUS MEDICAL and Amgen
The main advantage of trading using opposite GLOBUS MEDICAL and Amgen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GLOBUS MEDICAL 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.| GLOBUS MEDICAL vs. HK Electric Investments | GLOBUS MEDICAL vs. NEWELL RUBBERMAID | GLOBUS MEDICAL vs. APPLIED MATERIALS | GLOBUS MEDICAL vs. REINET INVESTMENTS SCA |
| Amgen vs. SYSTEMAIR AB | Amgen vs. CyberArk Software | Amgen vs. Fair Isaac Corp | Amgen vs. Wizz Air 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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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