Correlation Between 636180BR1 and Amgen
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By analyzing existing cross correlation between NFG 295 01 MAR 31 and Amgen Inc, you can compare the effects of market volatilities on 636180BR1 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 636180BR1 with a short position of Amgen. Check out your portfolio center. Please also check ongoing floating volatility patterns of 636180BR1 and Amgen.
Diversification Opportunities for 636180BR1 and Amgen
Good diversification
The 3 months correlation between 636180BR1 and Amgen is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding NFG 295 01 MAR 31 and Amgen Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amgen Inc and 636180BR1 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 NFG 295 01 MAR 31 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 636180BR1 i.e., 636180BR1 and Amgen go up and down completely randomly.
Pair Corralation between 636180BR1 and Amgen
Assuming the 90 days trading horizon 636180BR1 is expected to generate 5.77 times less return on investment than Amgen. But when comparing it to its historical volatility, NFG 295 01 MAR 31 is 2.06 times less risky than Amgen. It trades about 0.02 of its potential returns per unit of risk. Amgen Inc is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 21,393 in Amgen Inc on November 29, 2024 and sell it today you would earn a total of 9,170 from holding Amgen Inc or generate 42.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 87.04% |
| Values | Daily Returns |
NFG 295 01 MAR 31 vs. Amgen Inc
Performance |
| Timeline |
| NFG 295 01 |
| Amgen Inc |
636180BR1 and Amgen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with 636180BR1 and Amgen
The main advantage of trading using opposite 636180BR1 and Amgen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 636180BR1 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.| 636180BR1 vs. Hudson Technologies | 636180BR1 vs. Helmerich and Payne | 636180BR1 vs. Precision Drilling | 636180BR1 vs. Minerals Technologies |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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