Correlation Between Iovance Biotherapeutics and Amgen
Can any of the company-specific risk be diversified away by investing in both Iovance Biotherapeutics 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 Iovance Biotherapeutics and Amgen into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Iovance Biotherapeutics and Amgen Inc, you can compare the effects of market volatilities on Iovance Biotherapeutics 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 Iovance Biotherapeutics with a short position of Amgen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Iovance Biotherapeutics and Amgen.
Diversification Opportunities for Iovance Biotherapeutics and Amgen
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Iovance and Amgen is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Iovance Biotherapeutics and Amgen Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amgen Inc and Iovance Biotherapeutics 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 Iovance Biotherapeutics 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 Iovance Biotherapeutics i.e., Iovance Biotherapeutics and Amgen go up and down completely randomly.
Pair Corralation between Iovance Biotherapeutics and Amgen
Given the investment horizon of 90 days Iovance Biotherapeutics is expected to under-perform the Amgen. In addition to that, Iovance Biotherapeutics is 2.29 times more volatile than Amgen Inc. It trades about -0.2 of its total potential returns per unit of risk. Amgen Inc is currently generating about -0.19 per unit of volatility. If you would invest 29,647 in Amgen Inc on September 13, 2024 and sell it today you would lose (2,241) from holding Amgen Inc or give up 7.56% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Iovance Biotherapeutics vs. Amgen Inc
Performance |
| Timeline |
| Iovance Biotherapeutics |
| Amgen Inc |
Iovance Biotherapeutics and Amgen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Iovance Biotherapeutics and Amgen
The main advantage of trading using opposite Iovance Biotherapeutics and Amgen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Iovance Biotherapeutics 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.| Iovance Biotherapeutics vs. PTC Therapeutics | Iovance Biotherapeutics vs. Krystal Biotech | Iovance Biotherapeutics vs. Sarepta Therapeutics | Iovance Biotherapeutics vs. Madrigal Pharmaceuticals |
| 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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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