Correlation Between Amgen and CXApp

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

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

Diversification Opportunities for Amgen and CXApp

-0.84

Correlation Coefficient

Amgen  CXApp

Pay attention - limited upside

The 3 months correlation between Amgen and CXApp is -0.84. Overlapping area represents the amount of risk that can be diversified away by holding Amgen Inc and CXApp Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CXApp Inc 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 CXApp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CXApp Inc has no effect on the direction of Amgen i.e., Amgen and CXApp go up and down completely randomly.

Pair Corralation between Amgen and CXApp

Given the investment horizon of 90 days Amgen Inc is expected to generate 0.29 times more return on investment than CXApp. However, Amgen Inc is 3.5 times less risky than CXApp. It trades about 0.22 of its potential returns per unit of risk. CXApp Inc is currently generating about -0.11 per unit of risk. If you would invest  26,127  in Amgen Inc on December 20, 2024 and sell it today you would earn a total of  5,448  from holding Amgen Inc or generate 20.85% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Significant
Accuracy	98.33%
Values	Daily Returns

Amgen Inc  vs.  CXApp Inc

Amgen Inc

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Amgen Inc are ranked lower than 17 (%) of all global equities and portfolios over the last 90 days. In spite of very conflicting technical and fundamental indicators, Amgen displayed solid returns over the last few months and may actually be approaching a breakup point.

CXApp Inc

Risk-Adjusted Performance

Very Weak

Over the last 90 days CXApp Inc has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of inconsistent performance in the last few months, the Stock's forward indicators remain fairly stable which may send shares a bit higher in April 2025. The latest fuss may also be a sign of long-term up-swing for the venture sophisticated investors.

Pair Trading with Amgen and CXApp

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

The idea behind Amgen Inc and CXApp 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.

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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.