Correlation Between Beauty Health and AMGEN
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By analyzing existing cross correlation between Beauty Health Co and AMGEN INC 64, you can compare the effects of market volatilities on Beauty Health 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 Beauty Health with a short position of AMGEN. Check out your portfolio center. Please also check ongoing floating volatility patterns of Beauty Health and AMGEN.
Diversification Opportunities for Beauty Health and AMGEN
-0.44 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Beauty and AMGEN is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding Beauty Health Co and AMGEN INC 64 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AMGEN INC 64 and Beauty Health 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 Beauty Health Co 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 64 has no effect on the direction of Beauty Health i.e., Beauty Health and AMGEN go up and down completely randomly.
Pair Corralation between Beauty Health and AMGEN
Given the investment horizon of 90 days Beauty Health Co is expected to generate 3.66 times more return on investment than AMGEN. However, Beauty Health is 3.66 times more volatile than AMGEN INC 64. It trades about 0.0 of its potential returns per unit of risk. AMGEN INC 64 is currently generating about -0.07 per unit of risk. If you would invest 157.00 in Beauty Health Co on September 13, 2024 and sell it today you would lose (7.00) from holding Beauty Health Co or give up 4.46% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 67.44% |
Values | Daily Returns |
Beauty Health Co vs. AMGEN INC 64
Performance |
Timeline |
Beauty Health |
AMGEN INC 64 |
Beauty Health and AMGEN Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Beauty Health and AMGEN
The main advantage of trading using opposite Beauty Health and AMGEN positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Beauty Health 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.Beauty Health vs. Edgewell Personal Care | Beauty Health vs. Nu Skin Enterprises | Beauty Health vs. Helen of Troy | Beauty Health vs. European Wax Center |
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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 CEOs Directory module to screen CEOs from public companies around the world.
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