Correlation Between ReposiTrak and Amgen
Can any of the company-specific risk be diversified away by investing in both ReposiTrak 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 ReposiTrak and Amgen into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ReposiTrak and Amgen Inc, you can compare the effects of market volatilities on ReposiTrak 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 ReposiTrak with a short position of Amgen. Check out your portfolio center. Please also check ongoing floating volatility patterns of ReposiTrak and Amgen.
Diversification Opportunities for ReposiTrak and Amgen
-0.86 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between ReposiTrak and Amgen is -0.86. Overlapping area represents the amount of risk that can be diversified away by holding ReposiTrak and Amgen Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amgen Inc and ReposiTrak 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 ReposiTrak 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 ReposiTrak i.e., ReposiTrak and Amgen go up and down completely randomly.
Pair Corralation between ReposiTrak and Amgen
Given the investment horizon of 90 days ReposiTrak is expected to generate 1.64 times more return on investment than Amgen. However, ReposiTrak is 1.64 times more volatile than Amgen Inc. It trades about 0.15 of its potential returns per unit of risk. Amgen Inc is currently generating about 0.02 per unit of risk. If you would invest 932.00 in ReposiTrak on September 14, 2024 and sell it today you would earn a total of 1,455 from holding ReposiTrak or generate 156.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
ReposiTrak vs. Amgen Inc
Performance |
| Timeline |
| ReposiTrak |
| Amgen Inc |
ReposiTrak and Amgen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ReposiTrak and Amgen
The main advantage of trading using opposite ReposiTrak and Amgen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ReposiTrak 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.| ReposiTrak vs. Amgen Inc | ReposiTrak vs. Mangazeya Mining | ReposiTrak vs. Akanda Corp | ReposiTrak vs. Centessa Pharmaceuticals PLC |
| Amgen vs. Puma Biotechnology | Amgen vs. Iovance Biotherapeutics | Amgen vs. Day One Biopharmaceuticals | Amgen vs. Inozyme Pharma |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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