Correlation Between Lord Global and Amgen

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

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

Diversification Opportunities for Lord Global and Amgen

0.0

Correlation Coefficient

Lord Global  Amgen

Pay attention - limited upside

The 3 months correlation between Lord and Amgen is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Lord Global Corp and Amgen Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amgen Inc and Lord Global 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 Lord Global Corp are associated (or correlated) with Amgen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amgen Inc has no effect on the direction of Lord Global i.e., Lord Global and Amgen go up and down completely randomly.

Pair Corralation between Lord Global and Amgen

If you would invest  0.02  in Lord Global Corp on October 11, 2024 and sell it today you would earn a total of  0.00  from holding Lord Global Corp or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	4.76%
Values	Daily Returns

Lord Global Corp  vs.  Amgen Inc

Lord Global Corp

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Lord Global Corp has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable fundamental indicators, Lord Global is not utilizing all of its potentials. The latest stock price disturbance, may contribute to mid-run losses for the stockholders.

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.

Pair Trading with Lord Global and Amgen

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

The idea behind Lord Global Corp and Amgen 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.

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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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.