Correlation Between 26885BAN0 and Amgen
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By analyzing existing cross correlation between EQM 75 01 JUN 30 and Amgen Inc, you can compare the effects of market volatilities on 26885BAN0 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 26885BAN0 with a short position of Amgen. Check out your portfolio center. Please also check ongoing floating volatility patterns of 26885BAN0 and Amgen.
Diversification Opportunities for 26885BAN0 and Amgen
Poor diversification
The 3 months correlation between 26885BAN0 and Amgen is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding EQM 75 01 JUN 30 and Amgen Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amgen Inc and 26885BAN0 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 EQM 75 01 JUN 30 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 26885BAN0 i.e., 26885BAN0 and Amgen go up and down completely randomly.
Pair Corralation between 26885BAN0 and Amgen
Assuming the 90 days trading horizon 26885BAN0 is expected to generate 33.44 times less return on investment than Amgen. But when comparing it to its historical volatility, EQM 75 01 JUN 30 is 1.97 times less risky than Amgen. It trades about 0.0 of its potential returns per unit of risk. Amgen Inc is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 24,885 in Amgen Inc on September 12, 2024 and sell it today you would earn a total of 2,494 from holding Amgen Inc or generate 10.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 90.51% |
| Values | Daily Returns |
EQM 75 01 JUN 30 vs. Amgen Inc
Performance |
| Timeline |
| EQM 75 01 |
| Amgen Inc |
26885BAN0 and Amgen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with 26885BAN0 and Amgen
The main advantage of trading using opposite 26885BAN0 and Amgen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 26885BAN0 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.| 26885BAN0 vs. Amgen Inc | 26885BAN0 vs. Valneva SE ADR | 26885BAN0 vs. Catalyst Pharmaceuticals | 26885BAN0 vs. Centessa Pharmaceuticals PLC |
| Amgen vs. Victory Integrity Smallmid Cap | Amgen vs. Hilton Worldwide Holdings | Amgen vs. NVIDIA | Amgen vs. JPMorgan Chase Co |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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