Correlation Between Qualys and Amgen
Can any of the company-specific risk be diversified away by investing in both Qualys 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 Qualys and Amgen into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Qualys Inc and Amgen Inc, you can compare the effects of market volatilities on Qualys 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 Qualys with a short position of Amgen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Qualys and Amgen.
Diversification Opportunities for Qualys and Amgen
Excellent diversification
The 3 months correlation between Qualys and Amgen is -0.67. Overlapping area represents the amount of risk that can be diversified away by holding Qualys Inc and Amgen Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amgen Inc and Qualys 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 Qualys 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 has no effect on the direction of Qualys i.e., Qualys and Amgen go up and down completely randomly.
Pair Corralation between Qualys and Amgen
Given the investment horizon of 90 days Qualys Inc is expected to generate 2.42 times more return on investment than Amgen. However, Qualys is 2.42 times more volatile than Amgen Inc. It trades about 0.24 of its potential returns per unit of risk. Amgen Inc is currently generating about -0.23 per unit of risk. If you would invest 11,924 in Qualys Inc on September 1, 2024 and sell it today you would earn a total of 3,436 from holding Qualys Inc or generate 28.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Qualys Inc vs. Amgen Inc
Performance |
| Timeline |
| Qualys Inc |
| Amgen Inc |
Qualys and Amgen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Qualys and Amgen
The main advantage of trading using opposite Qualys and Amgen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Qualys 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.| Qualys vs. Palo Alto Networks | Qualys vs. Uipath Inc | Qualys vs. Block Inc | Qualys vs. Adobe Systems Incorporated |
| Amgen vs. Tff Pharmaceuticals | Amgen vs. Eliem Therapeutics | Amgen vs. Inhibrx | Amgen vs. Enliven Therapeutics |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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