Correlation Between Amgen and Reitar Logtech
Can any of the company-specific risk be diversified away by investing in both Amgen and Reitar Logtech 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 Reitar Logtech into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Amgen Inc and Reitar Logtech Holdings, you can compare the effects of market volatilities on Amgen and Reitar Logtech 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 Reitar Logtech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amgen and Reitar Logtech.
Diversification Opportunities for Amgen and Reitar Logtech
0.53 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Amgen and Reitar is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding Amgen Inc and Reitar Logtech Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Reitar Logtech Holdings 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 Reitar Logtech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Reitar Logtech Holdings has no effect on the direction of Amgen i.e., Amgen and Reitar Logtech go up and down completely randomly.
Pair Corralation between Amgen and Reitar Logtech
Given the investment horizon of 90 days Amgen Inc is expected to under-perform the Reitar Logtech. But the stock apears to be less risky and, when comparing its historical volatility, Amgen Inc is 9.58 times less risky than Reitar Logtech. The stock trades about -0.34 of its potential returns per unit of risk. The Reitar Logtech Holdings is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 439.00 in Reitar Logtech Holdings on September 25, 2024 and sell it today you would lose (46.00) from holding Reitar Logtech Holdings or give up 10.48% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Amgen Inc vs. Reitar Logtech Holdings
Performance |
Timeline |
Amgen Inc |
Reitar Logtech Holdings |
Amgen and Reitar Logtech Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Amgen and Reitar Logtech
The main advantage of trading using opposite Amgen and Reitar Logtech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amgen position performs unexpectedly, Reitar Logtech 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 Reitar Logtech will offset losses from the drop in Reitar Logtech's long position.Amgen vs. Fate Therapeutics | Amgen vs. Caribou Biosciences | Amgen vs. Karyopharm Therapeutics | Amgen vs. X4 Pharmaceuticals |
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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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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