Correlation Between Victory Integrity and Amgen
Can any of the company-specific risk be diversified away by investing in both Victory Integrity 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 Victory Integrity and Amgen into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Victory Integrity Smallmid Cap and Amgen Inc, you can compare the effects of market volatilities on Victory Integrity 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 Victory Integrity with a short position of Amgen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Victory Integrity and Amgen.
Diversification Opportunities for Victory Integrity and Amgen
-0.8 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Victory and Amgen is -0.8. Overlapping area represents the amount of risk that can be diversified away by holding Victory Integrity Smallmid Cap and Amgen Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amgen Inc and Victory Integrity 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 Victory Integrity Smallmid Cap 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 Victory Integrity i.e., Victory Integrity and Amgen go up and down completely randomly.
Pair Corralation between Victory Integrity and Amgen
Assuming the 90 days horizon Victory Integrity Smallmid Cap is expected to generate 0.46 times more return on investment than Amgen. However, Victory Integrity Smallmid Cap is 2.17 times less risky than Amgen. It trades about -0.03 of its potential returns per unit of risk. Amgen Inc is currently generating about -0.2 per unit of risk. If you would invest 2,521 in Victory Integrity Smallmid Cap on September 13, 2024 and sell it today you would lose (16.00) from holding Victory Integrity Smallmid Cap or give up 0.63% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Victory Integrity Smallmid Cap vs. Amgen Inc
Performance |
| Timeline |
| Victory Integrity |
| Amgen Inc |
Victory Integrity and Amgen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Victory Integrity and Amgen
The main advantage of trading using opposite Victory Integrity and Amgen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Victory Integrity 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.| Victory Integrity vs. Ashmore Emerging Markets | Victory Integrity vs. Origin Emerging Markets | Victory Integrity vs. Siit Emerging Markets | Victory Integrity vs. Pnc Emerging Markets |
| 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 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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