Correlation Between Amgen and Everest Consolidator

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

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

Diversification Opportunities for Amgen and Everest Consolidator

0.3

Correlation Coefficient

Amgen  Everest Consolidator

Weak diversification

The 3 months correlation between Amgen and Everest is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding Amgen Inc and Everest Consolidator Acquisiti in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Everest Consolidator 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 Everest Consolidator. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Everest Consolidator has no effect on the direction of Amgen i.e., Amgen and Everest Consolidator go up and down completely randomly.

Pair Corralation between Amgen and Everest Consolidator

If you would invest  26,449  in Amgen Inc on October 25, 2024 and sell it today you would earn a total of  895.00  from holding Amgen Inc or generate 3.38% return on investment over 90 days.

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

Amgen Inc  vs.  Everest Consolidator Acquisiti

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 conflicting performance in the last few months, the Stock's technical and fundamental indicators remain very healthy which may send shares a bit higher in February 2025. The recent disarray may also be a sign of long period up-swing for the firm investors.

Everest Consolidator

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Everest Consolidator Acquisition has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy basic indicators, Everest Consolidator is not utilizing all of its potentials. The recent stock price disarray, may contribute to short-term losses for the investors.

Pair Trading with Amgen and Everest Consolidator

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

The idea behind Amgen Inc and Everest Consolidator Acquisition 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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.