Correlation Between Transocean and AMGEN
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By analyzing existing cross correlation between Transocean and AMGEN INC, you can compare the effects of market volatilities on Transocean 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 Transocean with a short position of AMGEN. Check out your portfolio center. Please also check ongoing floating volatility patterns of Transocean and AMGEN.
Diversification Opportunities for Transocean and AMGEN
0.45 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Transocean and AMGEN is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding Transocean and AMGEN INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AMGEN INC and Transocean 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 Transocean 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 Transocean i.e., Transocean and AMGEN go up and down completely randomly.
Pair Corralation between Transocean and AMGEN
Considering the 90-day investment horizon Transocean is expected to under-perform the AMGEN. In addition to that, Transocean is 2.05 times more volatile than AMGEN INC. It trades about -0.12 of its total potential returns per unit of risk. AMGEN INC is currently generating about -0.08 per unit of volatility. If you would invest 9,489 in AMGEN INC on September 14, 2024 and sell it today you would lose (224.00) from holding AMGEN INC or give up 2.36% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Transocean vs. AMGEN INC
Performance |
| Timeline |
| Transocean |
| AMGEN INC |
Transocean and AMGEN Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Transocean and AMGEN
The main advantage of trading using opposite Transocean and AMGEN positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Transocean 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.| Transocean vs. Mid Atlantic Home Health | Transocean vs. Montauk Renewables | Transocean vs. CapitaLand Investment Limited | Transocean vs. Revolve Group LLC |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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