Correlation Between AMGEN and Cumulus Media
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By analyzing existing cross correlation between AMGEN INC and Cumulus Media Class, you can compare the effects of market volatilities on AMGEN and Cumulus Media 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 Cumulus Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of AMGEN and Cumulus Media.
Diversification Opportunities for AMGEN and Cumulus Media
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between AMGEN and Cumulus is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding AMGEN INC and Cumulus Media Class in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cumulus Media Class 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 Cumulus Media. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cumulus Media Class has no effect on the direction of AMGEN i.e., AMGEN and Cumulus Media go up and down completely randomly.
Pair Corralation between AMGEN and Cumulus Media
Assuming the 90 days trading horizon AMGEN INC is expected to generate 0.2 times more return on investment than Cumulus Media. However, AMGEN INC is 5.03 times less risky than Cumulus Media. It trades about -0.18 of its potential returns per unit of risk. Cumulus Media Class is currently generating about -0.15 per unit of risk. If you would invest 6,686 in AMGEN INC on September 2, 2024 and sell it today you would lose (150.00) from holding AMGEN INC or give up 2.24% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 57.14% |
| Values | Daily Returns |
AMGEN INC vs. Cumulus Media Class
Performance |
| Timeline |
| AMGEN INC |
| Cumulus Media Class |
AMGEN and Cumulus Media Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AMGEN and Cumulus Media
The main advantage of trading using opposite AMGEN and Cumulus Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AMGEN position performs unexpectedly, Cumulus Media 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 Cumulus Media will offset losses from the drop in Cumulus Media's long position.| AMGEN vs. Cumulus Media Class | AMGEN vs. Supercom | AMGEN vs. LB Foster | AMGEN vs. Highway Holdings Limited |
| Cumulus Media vs. E W Scripps | Cumulus Media vs. Gray Television | Cumulus Media vs. ProSiebenSat1 Media AG | Cumulus Media vs. RTL Group SA |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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