Correlation Between Telecom and Amgen
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By analyzing existing cross correlation between Telecom Italia Capital and Amgen Inc, you can compare the effects of market volatilities on Telecom 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 Telecom with a short position of Amgen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Telecom and Amgen.
Diversification Opportunities for Telecom and Amgen
Weak diversification
The 3 months correlation between Telecom and Amgen is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding Telecom Italia Capital and Amgen Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amgen Inc and Telecom 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 Telecom Italia Capital 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 Telecom i.e., Telecom and Amgen go up and down completely randomly.
Pair Corralation between Telecom and Amgen
Assuming the 90 days trading horizon Telecom is expected to generate 1.74 times less return on investment than Amgen. But when comparing it to its historical volatility, Telecom Italia Capital is 1.19 times less risky than Amgen. It trades about 0.03 of its potential returns per unit of risk. Amgen Inc is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 21,839 in Amgen Inc on September 12, 2024 and sell it today you would earn a total of 5,736 from holding Amgen Inc or generate 26.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.2% |
| Values | Daily Returns |
Telecom Italia Capital vs. Amgen Inc
Performance |
| Timeline |
| Telecom Italia Capital |
| Amgen Inc |
Telecom and Amgen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Telecom and Amgen
The main advantage of trading using opposite Telecom and Amgen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Telecom 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.| Telecom vs. AEP TEX INC | Telecom vs. US BANK NATIONAL | Telecom vs. Applied Blockchain | Telecom vs. BigBearai Holdings |
| 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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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