Correlation Between Amgen and TRADEDOUBLER

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

By analyzing existing cross correlation between Amgen Inc and TRADEDOUBLER AB SK, you can compare the effects of market volatilities on Amgen and TRADEDOUBLER 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 TRADEDOUBLER. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amgen and TRADEDOUBLER.

Diversification Opportunities for Amgen and TRADEDOUBLER

-0.52

Correlation Coefficient

Amgen  TRADEDOUBLER

Excellent diversification

The 3 months correlation between Amgen and TRADEDOUBLER is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding Amgen Inc and TRADEDOUBLER AB SK in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TRADEDOUBLER AB SK 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 TRADEDOUBLER. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TRADEDOUBLER AB SK has no effect on the direction of Amgen i.e., Amgen and TRADEDOUBLER go up and down completely randomly.

Pair Corralation between Amgen and TRADEDOUBLER

Assuming the 90 days trading horizon Amgen Inc is expected to generate 0.29 times more return on investment than TRADEDOUBLER. However, Amgen Inc is 3.4 times less risky than TRADEDOUBLER. It trades about 0.36 of its potential returns per unit of risk. TRADEDOUBLER AB SK is currently generating about 0.01 per unit of risk. If you would invest  25,120  in Amgen Inc on October 25, 2024 and sell it today you would earn a total of  1,150  from holding Amgen Inc or generate 4.58% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

Amgen Inc  vs.  TRADEDOUBLER AB SK

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. Despite latest unsteady performance, the Stock's technical and fundamental indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the company investors.

TRADEDOUBLER AB SK

Risk-Adjusted Performance

2 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in TRADEDOUBLER AB SK are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, TRADEDOUBLER may actually be approaching a critical reversion point that can send shares even higher in February 2025.

Pair Trading with Amgen and TRADEDOUBLER

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

The idea behind Amgen Inc and TRADEDOUBLER AB SK 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.

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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.