Correlation Between Marti Technologies and Amgen
Can any of the company-specific risk be diversified away by investing in both Marti Technologies 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 Marti Technologies and Amgen into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Marti Technologies and Amgen Inc, you can compare the effects of market volatilities on Marti Technologies 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 Marti Technologies with a short position of Amgen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Marti Technologies and Amgen.
Diversification Opportunities for Marti Technologies and Amgen
-0.26 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Marti and Amgen is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding Marti Technologies and Amgen Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amgen Inc and Marti Technologies 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 Marti Technologies 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 Marti Technologies i.e., Marti Technologies and Amgen go up and down completely randomly.
Pair Corralation between Marti Technologies and Amgen
Considering the 90-day investment horizon Marti Technologies is expected to generate 7.98 times less return on investment than Amgen. In addition to that, Marti Technologies is 5.07 times more volatile than Amgen Inc. It trades about 0.0 of its total potential returns per unit of risk. Amgen Inc is currently generating about 0.06 per unit of volatility. If you would invest 20,766 in Amgen Inc on September 2, 2024 and sell it today you would earn a total of 7,521 from holding Amgen Inc or generate 36.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.73% |
| Values | Daily Returns |
Marti Technologies vs. Amgen Inc
Performance |
| Timeline |
| Marti Technologies |
| Amgen Inc |
Marti Technologies and Amgen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Marti Technologies and Amgen
The main advantage of trading using opposite Marti Technologies and Amgen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Marti Technologies 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.| Marti Technologies vs. Keurig Dr Pepper | Marti Technologies vs. Ambev SA ADR | Marti Technologies vs. Molson Coors Brewing | Marti Technologies vs. PennantPark Floating Rate |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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