Correlation Between Vince Holding and Amgen
Can any of the company-specific risk be diversified away by investing in both Vince Holding and Amgen at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Vince Holding and Amgen into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Vince Holding Corp and Amgen Inc, you can compare the effects of market volatilities on Vince Holding 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 Vince Holding with a short position of Amgen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vince Holding and Amgen.
Diversification Opportunities for Vince Holding and Amgen
0.43 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Vince and Amgen is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding Vince Holding Corp and Amgen Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amgen Inc and Vince Holding 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 Vince Holding Corp 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 Vince Holding i.e., Vince Holding and Amgen go up and down completely randomly.
Pair Corralation between Vince Holding and Amgen
Given the investment horizon of 90 days Vince Holding Corp is expected to generate 4.45 times more return on investment than Amgen. However, Vince Holding is 4.45 times more volatile than Amgen Inc. It trades about 0.05 of its potential returns per unit of risk. Amgen Inc is currently generating about 0.04 per unit of risk. If you would invest 125.00 in Vince Holding Corp on August 26, 2024 and sell it today you would earn a total of 45.00 from holding Vince Holding Corp or generate 36.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Vince Holding Corp vs. Amgen Inc
Performance |
| Timeline |
| Vince Holding Corp |
| Amgen Inc |
Vince Holding and Amgen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Vince Holding and Amgen
The main advantage of trading using opposite Vince Holding and Amgen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vince Holding 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.| Vince Holding vs. VF Corporation | Vince Holding vs. Levi Strauss Co | Vince Holding vs. Under Armour A | Vince Holding vs. Oxford Industries |
| Amgen vs. Eliem Therapeutics | Amgen vs. HCW Biologics | Amgen vs. Scpharmaceuticals | Amgen vs. Milestone Pharmaceuticals |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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