Correlation Between Monster Beverage and AMGEN
Specify exactly 2 symbols:
By analyzing existing cross correlation between Monster Beverage Corp and AMGEN INC, you can compare the effects of market volatilities on Monster Beverage 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 Monster Beverage with a short position of AMGEN. Check out your portfolio center. Please also check ongoing floating volatility patterns of Monster Beverage and AMGEN.
Diversification Opportunities for Monster Beverage and AMGEN
-0.66 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Monster and AMGEN is -0.66. Overlapping area represents the amount of risk that can be diversified away by holding Monster Beverage Corp and AMGEN INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AMGEN INC and Monster Beverage 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 Monster Beverage Corp 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 Monster Beverage i.e., Monster Beverage and AMGEN go up and down completely randomly.
Pair Corralation between Monster Beverage and AMGEN
Given the investment horizon of 90 days Monster Beverage Corp is expected to generate 1.53 times more return on investment than AMGEN. However, Monster Beverage is 1.53 times more volatile than AMGEN INC. It trades about -0.01 of its potential returns per unit of risk. AMGEN INC is currently generating about -0.03 per unit of risk. If you would invest 5,558 in Monster Beverage Corp on September 14, 2024 and sell it today you would lose (301.00) from holding Monster Beverage Corp or give up 5.42% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 83.13% |
| Values | Daily Returns |
Monster Beverage Corp vs. AMGEN INC
Performance |
| Timeline |
| Monster Beverage Corp |
| AMGEN INC |
Monster Beverage and AMGEN Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Monster Beverage and AMGEN
The main advantage of trading using opposite Monster Beverage and AMGEN positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Monster Beverage 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.| Monster Beverage vs. Coca Cola Femsa SAB | Monster Beverage vs. Keurig Dr Pepper | Monster Beverage vs. Embotelladora Andina SA | Monster Beverage vs. Coca Cola European Partners |
| AMGEN vs. AEP TEX INC | AMGEN vs. US BANK NATIONAL | AMGEN vs. Applied Blockchain | AMGEN vs. BigBearai 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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
Other Complementary Tools
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators |