Correlation Between Pfizer and AMGEN
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By analyzing existing cross correlation between Pfizer Inc and AMGEN INC 64, you can compare the effects of market volatilities on Pfizer 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 Pfizer with a short position of AMGEN. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pfizer and AMGEN.
Diversification Opportunities for Pfizer and AMGEN
Poor diversification
The 3 months correlation between Pfizer and AMGEN is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding Pfizer Inc and AMGEN INC 64 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AMGEN INC 64 and Pfizer 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 Pfizer Inc 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 64 has no effect on the direction of Pfizer i.e., Pfizer and AMGEN go up and down completely randomly.
Pair Corralation between Pfizer and AMGEN
Considering the 90-day investment horizon Pfizer Inc is expected to under-perform the AMGEN. In addition to that, Pfizer is 1.38 times more volatile than AMGEN INC 64. It trades about -0.12 of its total potential returns per unit of risk. AMGEN INC 64 is currently generating about -0.12 per unit of volatility. If you would invest 11,459 in AMGEN INC 64 on September 12, 2024 and sell it today you would lose (628.00) from holding AMGEN INC 64 or give up 5.48% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 71.43% |
| Values | Daily Returns |
Pfizer Inc vs. AMGEN INC 64
Performance |
| Timeline |
| Pfizer Inc |
| AMGEN INC 64 |
Pfizer and AMGEN Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pfizer and AMGEN
The main advantage of trading using opposite Pfizer and AMGEN positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pfizer 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.| Pfizer vs. Merck Company | Pfizer vs. Victory Integrity Smallmid Cap | Pfizer vs. Hilton Worldwide Holdings | Pfizer vs. NVIDIA |
| AMGEN vs. Diamond Estates Wines | AMGEN vs. Beauty Health Co | AMGEN vs. Diageo PLC ADR | AMGEN vs. World Houseware Limited |
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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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