Correlation Between Horizon Pharma and Amgen
Can any of the company-specific risk be diversified away by investing in both Horizon Pharma 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 Horizon Pharma and Amgen into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Horizon Pharma PLC and Amgen Inc, you can compare the effects of market volatilities on Horizon Pharma 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 Horizon Pharma with a short position of Amgen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Horizon Pharma and Amgen.
Diversification Opportunities for Horizon Pharma and Amgen
0.33 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Horizon and Amgen is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding Horizon Pharma PLC and Amgen Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amgen Inc and Horizon Pharma 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 Horizon Pharma PLC 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 Horizon Pharma i.e., Horizon Pharma and Amgen go up and down completely randomly.
Pair Corralation between Horizon Pharma and Amgen
If you would invest 10,040 in Horizon Pharma PLC on August 29, 2024 and sell it today you would earn a total of 0.00 from holding Horizon Pharma PLC or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 4.55% |
| Values | Daily Returns |
Horizon Pharma PLC vs. Amgen Inc
Performance |
| Timeline |
| Horizon Pharma PLC |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Amgen Inc |
Horizon Pharma and Amgen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Horizon Pharma and Amgen
The main advantage of trading using opposite Horizon Pharma and Amgen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Horizon Pharma 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.| Horizon Pharma vs. Bristol Myers Squibb | Horizon Pharma vs. AbbVie Inc | Horizon Pharma vs. Merck Company | Horizon Pharma vs. Gilead Sciences |
| Amgen vs. Eliem Therapeutics | Amgen vs. Scpharmaceuticals | Amgen vs. Milestone Pharmaceuticals | Amgen vs. Seres Therapeutics |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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