Correlation Between Scpharmaceuticals and Amgen
Can any of the company-specific risk be diversified away by investing in both Scpharmaceuticals 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 Scpharmaceuticals and Amgen into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Scpharmaceuticals and Amgen Inc, you can compare the effects of market volatilities on Scpharmaceuticals 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 Scpharmaceuticals with a short position of Amgen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Scpharmaceuticals and Amgen.
Diversification Opportunities for Scpharmaceuticals and Amgen
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Scpharmaceuticals and Amgen is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Scpharmaceuticals and Amgen Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amgen Inc and Scpharmaceuticals 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 Scpharmaceuticals 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 Scpharmaceuticals i.e., Scpharmaceuticals and Amgen go up and down completely randomly.
Pair Corralation between Scpharmaceuticals and Amgen
Given the investment horizon of 90 days Scpharmaceuticals is expected to under-perform the Amgen. In addition to that, Scpharmaceuticals is 2.83 times more volatile than Amgen Inc. It trades about -0.01 of its total potential returns per unit of risk. Amgen Inc is currently generating about 0.01 per unit of volatility. If you would invest 26,791 in Amgen Inc on August 29, 2024 and sell it today you would earn a total of 1,210 from holding Amgen Inc or generate 4.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Scpharmaceuticals vs. Amgen Inc
Performance |
| Timeline |
| Scpharmaceuticals |
| Amgen Inc |
Scpharmaceuticals and Amgen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Scpharmaceuticals and Amgen
The main advantage of trading using opposite Scpharmaceuticals and Amgen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Scpharmaceuticals 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.| Scpharmaceuticals vs. Capricor Therapeutics | Scpharmaceuticals vs. Soleno Therapeutics | Scpharmaceuticals vs. Bio Path Holdings | Scpharmaceuticals vs. Moleculin Biotech |
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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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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