Correlation Between Amgen and QUEEN S

Can any of the company-specific risk be diversified away by investing in both Amgen and QUEEN S 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 Amgen and QUEEN S into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Amgen Inc and QUEEN S ROAD, you can compare the effects of market volatilities on Amgen and QUEEN S 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 Amgen with a short position of QUEEN S. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amgen and QUEEN S.

Diversification Opportunities for Amgen and QUEEN S

0.07

Correlation Coefficient

Amgen  QUEEN S

Significant diversification

The 3 months correlation between Amgen and QUEEN is 0.07. Overlapping area represents the amount of risk that can be diversified away by holding Amgen Inc and QUEEN S ROAD in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on QUEEN S ROAD and Amgen 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 Amgen Inc are associated (or correlated) with QUEEN S. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of QUEEN S ROAD has no effect on the direction of Amgen i.e., Amgen and QUEEN S go up and down completely randomly.

Pair Corralation between Amgen and QUEEN S

Assuming the 90 days trading horizon Amgen Inc is expected to generate 0.54 times more return on investment than QUEEN S. However, Amgen Inc is 1.84 times less risky than QUEEN S. It trades about 0.19 of its potential returns per unit of risk. QUEEN S ROAD is currently generating about -0.07 per unit of risk. If you would invest  25,400  in Amgen Inc on October 27, 2024 and sell it today you would earn a total of  1,080  from holding Amgen Inc or generate 4.25% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	95.0%
Values	Daily Returns

Amgen Inc  vs.  QUEEN S ROAD

Amgen Inc

Risk-Adjusted Performance

0 of 100

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 latest unsteady performance, the Stock's technical and fundamental indicators remain sound and the latest tumult on Wall Street may also be a sign of longer-term gains for the firm shareholders.

QUEEN S ROAD

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days QUEEN S ROAD has generated negative risk-adjusted returns adding no value to investors with long positions. Despite uncertain 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.

Pair Trading with Amgen and QUEEN S

The main advantage of trading using opposite Amgen and QUEEN S positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amgen position performs unexpectedly, QUEEN S 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 QUEEN S will offset losses from the drop in QUEEN S's long position.

The idea behind Amgen Inc and QUEEN S ROAD 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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.