Correlation Between NURAN WIRELESS and Amgen

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Can any of the company-specific risk be diversified away by investing in both NURAN WIRELESS 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 NURAN WIRELESS and Amgen into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NURAN WIRELESS INC and Amgen Inc, you can compare the effects of market volatilities on NURAN WIRELESS 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 NURAN WIRELESS with a short position of Amgen. Check out your portfolio center. Please also check ongoing floating volatility patterns of NURAN WIRELESS and Amgen.

Diversification Opportunities for NURAN WIRELESS and Amgen

0.86
  Correlation Coefficient

Very poor diversification

The 3 months correlation between NURAN and Amgen is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding NURAN WIRELESS INC and Amgen Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amgen Inc and NURAN WIRELESS 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 NURAN WIRELESS INC 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 NURAN WIRELESS i.e., NURAN WIRELESS and Amgen go up and down completely randomly.

Pair Corralation between NURAN WIRELESS and Amgen

Assuming the 90 days trading horizon NURAN WIRELESS INC is expected to generate 2.91 times more return on investment than Amgen. However, NURAN WIRELESS is 2.91 times more volatile than Amgen Inc. It trades about 0.03 of its potential returns per unit of risk. Amgen Inc is currently generating about -0.14 per unit of risk. If you would invest  4.54  in NURAN WIRELESS INC on October 10, 2024 and sell it today you would earn a total of  0.04  from holding NURAN WIRELESS INC or generate 0.88% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthStrong
Accuracy100.0%
ValuesDaily Returns

NURAN WIRELESS INC  vs.  Amgen Inc

 Performance 
       Timeline  
NURAN WIRELESS INC 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days NURAN WIRELESS INC has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fragile performance in the last few months, the Stock's basic indicators remain nearly stable which may send shares a bit higher in February 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.
Amgen Inc 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days Amgen Inc has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fragile performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in February 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

NURAN WIRELESS and Amgen Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with NURAN WIRELESS and Amgen

The main advantage of trading using opposite NURAN WIRELESS and Amgen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NURAN WIRELESS 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.
The idea behind NURAN WIRELESS INC and Amgen Inc pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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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 Channel module to use Commodity Channel Index to analyze current equity momentum.

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