Correlation Between Radcom and Amgen
Can any of the company-specific risk be diversified away by investing in both Radcom 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 Radcom and Amgen into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Radcom and Amgen Inc, you can compare the effects of market volatilities on Radcom 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 Radcom with a short position of Amgen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Radcom and Amgen.
Diversification Opportunities for Radcom and Amgen
Pay attention - limited upside
The 3 months correlation between Radcom and Amgen is -0.83. Overlapping area represents the amount of risk that can be diversified away by holding Radcom and Amgen Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amgen Inc and Radcom 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 Radcom 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 Radcom i.e., Radcom and Amgen go up and down completely randomly.
Pair Corralation between Radcom and Amgen
Given the investment horizon of 90 days Radcom is expected to generate 1.7 times more return on investment than Amgen. However, Radcom is 1.7 times more volatile than Amgen Inc. It trades about 0.17 of its potential returns per unit of risk. Amgen Inc is currently generating about -0.23 per unit of risk. If you would invest 1,055 in Radcom on September 1, 2024 and sell it today you would earn a total of 140.00 from holding Radcom or generate 13.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Radcom vs. Amgen Inc
Performance |
| Timeline |
| Radcom |
| Amgen Inc |
Radcom and Amgen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Radcom and Amgen
The main advantage of trading using opposite Radcom and Amgen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Radcom 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.| Radcom vs. Shenandoah Telecommunications Co | Radcom vs. Anterix | Radcom vs. SK Telecom Co | Radcom vs. Liberty Broadband Srs |
| 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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
Other Complementary Tools
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data |