Correlation Between Pfizer and AMGEN
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By analyzing existing cross correlation between Pfizer Inc and AMGEN INC 515, 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 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Pfizer Inc and AMGEN INC 515 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AMGEN INC 515 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 515 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. But the stock apears to be less risky and, when comparing its historical volatility, Pfizer Inc is 47.85 times less risky than AMGEN. The stock trades about -0.08 of its potential returns per unit of risk. The AMGEN INC 515 is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 9,915 in AMGEN INC 515 on September 5, 2024 and sell it today you would lose (534.00) from holding AMGEN INC 515 or give up 5.39% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 84.65% |
| Values | Daily Returns |
Pfizer Inc vs. AMGEN INC 515
Performance |
| Timeline |
| Pfizer Inc |
| AMGEN INC 515 |
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. Crinetics Pharmaceuticals | Pfizer vs. Enanta Pharmaceuticals | Pfizer vs. Amicus Therapeutics | Pfizer vs. Connect Biopharma 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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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