Correlation Between AMGEN and International Business
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By analyzing existing cross correlation between AMGEN INC and International Business Machines, you can compare the effects of market volatilities on AMGEN and International Business 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 AMGEN with a short position of International Business. Check out your portfolio center. Please also check ongoing floating volatility patterns of AMGEN and International Business.
Diversification Opportunities for AMGEN and International Business
-0.24 | Correlation Coefficient |
Very good diversification
The 3 months correlation between AMGEN and International is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding AMGEN INC and International Business Machine in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on International Business and AMGEN 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 AMGEN INC are associated (or correlated) with International Business. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of International Business has no effect on the direction of AMGEN i.e., AMGEN and International Business go up and down completely randomly.
Pair Corralation between AMGEN and International Business
Assuming the 90 days trading horizon AMGEN INC is expected to under-perform the International Business. But the bond apears to be less risky and, when comparing its historical volatility, AMGEN INC is 2.58 times less risky than International Business. The bond trades about -0.04 of its potential returns per unit of risk. The International Business Machines is currently generating about 0.22 of returns per unit of risk over similar time horizon. If you would invest 16,257 in International Business Machines on September 1, 2024 and sell it today you would earn a total of 6,484 from holding International Business Machines or generate 39.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 98.41% |
| Values | Daily Returns |
AMGEN INC vs. International Business Machine
Performance |
| Timeline |
| AMGEN INC |
| International Business |
AMGEN and International Business Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AMGEN and International Business
The main advantage of trading using opposite AMGEN and International Business positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AMGEN position performs unexpectedly, International Business 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 International Business will offset losses from the drop in International Business' long position.The idea behind AMGEN INC and International Business Machines pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| International Business vs. FiscalNote Holdings | International Business vs. Innodata | International Business vs. Aurora Innovation | International Business vs. Conduent |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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