Correlation Between AMGEN and Sea
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By analyzing existing cross correlation between AMGEN INC and Sea, you can compare the effects of market volatilities on AMGEN and Sea 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 Sea. Check out your portfolio center. Please also check ongoing floating volatility patterns of AMGEN and Sea.
Diversification Opportunities for AMGEN and Sea
Excellent diversification
The 3 months correlation between AMGEN and Sea is -0.63. Overlapping area represents the amount of risk that can be diversified away by holding AMGEN INC and Sea in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sea 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 Sea. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sea has no effect on the direction of AMGEN i.e., AMGEN and Sea go up and down completely randomly.
Pair Corralation between AMGEN and Sea
Assuming the 90 days trading horizon AMGEN INC is expected to under-perform the Sea. But the bond apears to be less risky and, when comparing its historical volatility, AMGEN INC is 2.45 times less risky than Sea. The bond trades about -0.17 of its potential returns per unit of risk. The Sea is currently generating about 0.25 of returns per unit of risk over similar time horizon. If you would invest 7,912 in Sea on September 12, 2024 and sell it today you would earn a total of 3,293 from holding Sea or generate 41.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 71.43% |
| Values | Daily Returns |
AMGEN INC vs. Sea
Performance |
| Timeline |
| AMGEN INC |
| Sea |
AMGEN and Sea Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AMGEN and Sea
The main advantage of trading using opposite AMGEN and Sea positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AMGEN position performs unexpectedly, Sea 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 Sea will offset losses from the drop in Sea's long position.| AMGEN vs. Aris Water Solutions | AMGEN vs. Vita Coco | AMGEN vs. GE Vernova LLC | AMGEN vs. Anheuser Busch Inbev |
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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