Correlation Between AMGEN and Playa Hotels
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By analyzing existing cross correlation between AMGEN INC and Playa Hotels Resorts, you can compare the effects of market volatilities on AMGEN and Playa Hotels 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 Playa Hotels. Check out your portfolio center. Please also check ongoing floating volatility patterns of AMGEN and Playa Hotels.
Diversification Opportunities for AMGEN and Playa Hotels
-0.66 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between AMGEN and Playa is -0.66. Overlapping area represents the amount of risk that can be diversified away by holding AMGEN INC and Playa Hotels Resorts in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Playa Hotels Resorts 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 Playa Hotels. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Playa Hotels Resorts has no effect on the direction of AMGEN i.e., AMGEN and Playa Hotels go up and down completely randomly.
Pair Corralation between AMGEN and Playa Hotels
Assuming the 90 days trading horizon AMGEN is expected to generate 11.13 times less return on investment than Playa Hotels. But when comparing it to its historical volatility, AMGEN INC is 4.05 times less risky than Playa Hotels. It trades about 0.02 of its potential returns per unit of risk. Playa Hotels Resorts is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 730.00 in Playa Hotels Resorts on September 12, 2024 and sell it today you would earn a total of 272.00 from holding Playa Hotels Resorts or generate 37.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 99.4% |
| Values | Daily Returns |
AMGEN INC vs. Playa Hotels Resorts
Performance |
| Timeline |
| AMGEN INC |
| Playa Hotels Resorts |
AMGEN and Playa Hotels Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AMGEN and Playa Hotels
The main advantage of trading using opposite AMGEN and Playa Hotels positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AMGEN position performs unexpectedly, Playa Hotels 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 Playa Hotels will offset losses from the drop in Playa Hotels' long position.| AMGEN vs. AEP TEX INC | AMGEN vs. US BANK NATIONAL | AMGEN vs. Applied Blockchain | AMGEN vs. BigBearai Holdings |
| Playa Hotels vs. Golden Entertainment | Playa Hotels vs. Red Rock Resorts | Playa Hotels vs. Century Casinos | Playa Hotels vs. Studio City International |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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