Correlation Between Joint Stock and Amgen
Can any of the company-specific risk be diversified away by investing in both Joint Stock 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 Joint Stock and Amgen into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Joint Stock and Amgen Inc, you can compare the effects of market volatilities on Joint Stock 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 Joint Stock with a short position of Amgen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Joint Stock and Amgen.
Diversification Opportunities for Joint Stock and Amgen
0.27 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Joint and Amgen is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding Joint Stock and Amgen Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amgen Inc and Joint Stock 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 Joint Stock 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 Joint Stock i.e., Joint Stock and Amgen go up and down completely randomly.
Pair Corralation between Joint Stock and Amgen
Given the investment horizon of 90 days Joint Stock is expected to generate 0.79 times more return on investment than Amgen. However, Joint Stock is 1.27 times less risky than Amgen. It trades about -0.04 of its potential returns per unit of risk. Amgen Inc is currently generating about -0.23 per unit of risk. If you would invest 10,838 in Joint Stock on September 1, 2024 and sell it today you would lose (198.00) from holding Joint Stock or give up 1.83% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Joint Stock vs. Amgen Inc
Performance |
| Timeline |
| Joint Stock |
| Amgen Inc |
Joint Stock and Amgen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Joint Stock and Amgen
The main advantage of trading using opposite Joint Stock and Amgen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Joint Stock 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.| Joint Stock vs. Grocery Outlet Holding | Joint Stock vs. NH Foods Ltd | Joint Stock vs. Natural Alternatives International | Joint Stock vs. Tyson Foods |
| Amgen vs. Tff Pharmaceuticals | Amgen vs. Eliem Therapeutics | Amgen vs. Inhibrx | Amgen vs. Enliven 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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