Correlation Between Global Ship and AMGEN
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By analyzing existing cross correlation between Global Ship Lease and AMGEN INC 64, you can compare the effects of market volatilities on Global Ship 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 Global Ship with a short position of AMGEN. Check out your portfolio center. Please also check ongoing floating volatility patterns of Global Ship and AMGEN.
Diversification Opportunities for Global Ship and AMGEN
0.16 | Correlation Coefficient |
Average diversification
The 3 months correlation between Global and AMGEN is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding Global Ship Lease and AMGEN INC 64 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AMGEN INC 64 and Global Ship 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 Global Ship Lease 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 64 has no effect on the direction of Global Ship i.e., Global Ship and AMGEN go up and down completely randomly.
Pair Corralation between Global Ship and AMGEN
Assuming the 90 days trading horizon Global Ship is expected to generate 8.73 times less return on investment than AMGEN. But when comparing it to its historical volatility, Global Ship Lease is 2.83 times less risky than AMGEN. It trades about 0.05 of its potential returns per unit of risk. AMGEN INC 64 is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest 10,728 in AMGEN INC 64 on September 15, 2024 and sell it today you would earn a total of 361.00 from holding AMGEN INC 64 or generate 3.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 66.67% |
| Values | Daily Returns |
Global Ship Lease vs. AMGEN INC 64
Performance |
| Timeline |
| Global Ship Lease |
| AMGEN INC 64 |
Global Ship and AMGEN Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Global Ship and AMGEN
The main advantage of trading using opposite Global Ship and AMGEN positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Global Ship 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.The idea behind Global Ship Lease and AMGEN INC 64 pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| AMGEN vs. Global Ship Lease | AMGEN vs. Asure Software | AMGEN vs. Fortress Transp Infra | AMGEN vs. Triton International Limited |
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 Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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