Correlation Between Wendys and AMGEN
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By analyzing existing cross correlation between The Wendys Co and AMGEN INC, you can compare the effects of market volatilities on Wendys 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 Wendys with a short position of AMGEN. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wendys and AMGEN.
Diversification Opportunities for Wendys and AMGEN
Very good diversification
The 3 months correlation between Wendys and AMGEN is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding The Wendys Co and AMGEN INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AMGEN INC and Wendys 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 The Wendys Co 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 Wendys i.e., Wendys and AMGEN go up and down completely randomly.
Pair Corralation between Wendys and AMGEN
Considering the 90-day investment horizon The Wendys Co is expected to under-perform the AMGEN. But the stock apears to be less risky and, when comparing its historical volatility, The Wendys Co is 1.29 times less risky than AMGEN. The stock trades about -0.22 of its potential returns per unit of risk. The AMGEN INC is currently generating about -0.07 of returns per unit of risk over similar time horizon. If you would invest 8,893 in AMGEN INC on September 12, 2024 and sell it today you would lose (205.00) from holding AMGEN INC or give up 2.31% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
The Wendys Co vs. AMGEN INC
Performance |
| Timeline |
| The Wendys |
| AMGEN INC |
Wendys and AMGEN Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Wendys and AMGEN
The main advantage of trading using opposite Wendys and AMGEN positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Wendys 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.| Wendys vs. Yum Brands | Wendys vs. Dominos Pizza | Wendys vs. Darden Restaurants | Wendys vs. Papa Johns International |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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