Correlation Between Huabao International and Amgen
Can any of the company-specific risk be diversified away by investing in both Huabao International 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 Huabao International and Amgen into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Huabao International Holdings and Amgen Inc, you can compare the effects of market volatilities on Huabao International 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 Huabao International with a short position of Amgen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Huabao International and Amgen.
Diversification Opportunities for Huabao International and Amgen
0.06 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Huabao and Amgen is 0.06. Overlapping area represents the amount of risk that can be diversified away by holding Huabao International Holdings and Amgen Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amgen Inc and Huabao International 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 Huabao International Holdings 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 Huabao International i.e., Huabao International and Amgen go up and down completely randomly.
Pair Corralation between Huabao International and Amgen
If you would invest 1,460 in Huabao International Holdings on September 13, 2024 and sell it today you would earn a total of 0.00 from holding Huabao International Holdings or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 4.55% |
| Values | Daily Returns |
Huabao International Holdings vs. Amgen Inc
Performance |
| Timeline |
| Huabao International |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Amgen Inc |
Huabao International and Amgen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Huabao International and Amgen
The main advantage of trading using opposite Huabao International and Amgen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Huabao International 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.| Huabao International vs. Getty Copper | Huabao International vs. Vestis | Huabao International vs. Highway Holdings Limited | Huabao International vs. Bright Scholar Education |
| Amgen vs. Puma Biotechnology | Amgen vs. Iovance Biotherapeutics | Amgen vs. Sarepta Therapeutics | Amgen vs. Day One Biopharmaceuticals |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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