Correlation Between Nabors Industries and Amgen
Can any of the company-specific risk be diversified away by investing in both Nabors Industries 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 Nabors Industries and Amgen into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nabors Industries and Amgen Inc, you can compare the effects of market volatilities on Nabors Industries 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 Nabors Industries with a short position of Amgen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nabors Industries and Amgen.
Diversification Opportunities for Nabors Industries and Amgen
-0.05 | Correlation Coefficient |
Good diversification
The 3 months correlation between Nabors and Amgen is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding Nabors Industries and Amgen Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amgen Inc and Nabors Industries 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 Nabors Industries 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 Nabors Industries i.e., Nabors Industries and Amgen go up and down completely randomly.
Pair Corralation between Nabors Industries and Amgen
Considering the 90-day investment horizon Nabors Industries is expected to under-perform the Amgen. In addition to that, Nabors Industries is 1.01 times more volatile than Amgen Inc. It trades about -0.41 of its total potential returns per unit of risk. Amgen Inc is currently generating about -0.3 per unit of volatility. If you would invest 31,926 in Amgen Inc on September 12, 2024 and sell it today you would lose (4,548) from holding Amgen Inc or give up 14.24% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nabors Industries vs. Amgen Inc
Performance |
| Timeline |
| Nabors Industries |
| Amgen Inc |
Nabors Industries and Amgen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nabors Industries and Amgen
The main advantage of trading using opposite Nabors Industries and Amgen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nabors Industries 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.| Nabors Industries vs. Helmerich and Payne | Nabors Industries vs. Precision Drilling | Nabors Industries vs. Seadrill Limited | Nabors Industries vs. Borr Drilling |
| Amgen vs. Victory Integrity Smallmid Cap | Amgen vs. Hilton Worldwide Holdings | Amgen vs. NVIDIA | Amgen vs. JPMorgan Chase Co |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
Other Complementary Tools
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| 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 | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio |