Correlation Between 78454LAP5 and Amgen
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By analyzing existing cross correlation between SM ENERGY 6625 and Amgen Inc, you can compare the effects of market volatilities on 78454LAP5 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 78454LAP5 with a short position of Amgen. Check out your portfolio center. Please also check ongoing floating volatility patterns of 78454LAP5 and Amgen.
Diversification Opportunities for 78454LAP5 and Amgen
Very good diversification
The 3 months correlation between 78454LAP5 and Amgen is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding SM ENERGY 6625 and Amgen Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amgen Inc and 78454LAP5 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 SM ENERGY 6625 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 78454LAP5 i.e., 78454LAP5 and Amgen go up and down completely randomly.
Pair Corralation between 78454LAP5 and Amgen
Assuming the 90 days trading horizon SM ENERGY 6625 is expected to under-perform the Amgen. But the bond apears to be less risky and, when comparing its historical volatility, SM ENERGY 6625 is 3.41 times less risky than Amgen. The bond trades about -0.13 of its potential returns per unit of risk. The Amgen Inc is currently generating about 0.28 of returns per unit of risk over similar time horizon. If you would invest 25,722 in Amgen Inc on November 30, 2024 and sell it today you would earn a total of 5,093 from holding Amgen Inc or generate 19.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 97.62% |
| Values | Daily Returns |
SM ENERGY 6625 vs. Amgen Inc
Performance |
| Timeline |
| SM ENERGY 6625 |
| Amgen Inc |
78454LAP5 and Amgen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with 78454LAP5 and Amgen
The main advantage of trading using opposite 78454LAP5 and Amgen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 78454LAP5 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.| 78454LAP5 vs. MOGU Inc | 78454LAP5 vs. Mills Music Trust | 78454LAP5 vs. Neogen | 78454LAP5 vs. Albertsons Companies |
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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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