Correlation Between Hurco Companies and Amgen
Can any of the company-specific risk be diversified away by investing in both Hurco Companies 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 Hurco Companies and Amgen into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hurco Companies and Amgen Inc, you can compare the effects of market volatilities on Hurco Companies 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 Hurco Companies with a short position of Amgen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hurco Companies and Amgen.
Diversification Opportunities for Hurco Companies and Amgen
-0.67 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Hurco and Amgen is -0.67. Overlapping area represents the amount of risk that can be diversified away by holding Hurco Companies and Amgen Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amgen Inc and Hurco Companies 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 Hurco Companies 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 Hurco Companies i.e., Hurco Companies and Amgen go up and down completely randomly.
Pair Corralation between Hurco Companies and Amgen
Given the investment horizon of 90 days Hurco Companies is expected to under-perform the Amgen. In addition to that, Hurco Companies is 1.57 times more volatile than Amgen Inc. It trades about 0.0 of its total potential returns per unit of risk. Amgen Inc is currently generating about 0.02 per unit of volatility. If you would invest 25,416 in Amgen Inc on September 3, 2024 and sell it today you would earn a total of 2,871 from holding Amgen Inc or generate 11.3% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hurco Companies vs. Amgen Inc
Performance |
| Timeline |
| Hurco Companies |
| Amgen Inc |
Hurco Companies and Amgen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hurco Companies and Amgen
The main advantage of trading using opposite Hurco Companies and Amgen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hurco Companies 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.| Hurco Companies vs. Enerpac Tool Group | Hurco Companies vs. Enpro Industries | Hurco Companies vs. Omega Flex | Hurco Companies vs. Gorman Rupp |
| Amgen vs. Pfizer Inc | Amgen vs. Johnson Johnson | Amgen vs. Highway Holdings Limited | Amgen vs. QCR 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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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