Correlation Between HEIA and Amgen
Can any of the company-specific risk be diversified away by investing in both HEIA 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 HEIA and Amgen into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between HEIA and Amgen Inc, you can compare the effects of market volatilities on HEIA 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 HEIA with a short position of Amgen. Check out your portfolio center. Please also check ongoing floating volatility patterns of HEIA and Amgen.
Diversification Opportunities for HEIA and Amgen
Excellent diversification
The 3 months correlation between HEIA and Amgen is -0.58. Overlapping area represents the amount of risk that can be diversified away by holding HEIA and Amgen Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amgen Inc and HEIA 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 HEIA 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 HEIA i.e., HEIA and Amgen go up and down completely randomly.
Pair Corralation between HEIA and Amgen
If you would invest 20,122 in HEIA on August 25, 2024 and sell it today you would earn a total of 0.00 from holding HEIA or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 2.22% |
| Values | Daily Returns |
HEIA vs. Amgen Inc
Performance |
| Timeline |
| HEIA |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Good
| Amgen Inc |
HEIA and Amgen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HEIA and Amgen
The main advantage of trading using opposite HEIA and Amgen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HEIA 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.| HEIA vs. PT Bank Maybank | HEIA vs. National Bank Holdings | HEIA vs. OAKTRSPECLENDNEW | HEIA vs. The Hanover Insurance |
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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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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