Correlation Between Massimo Group and Amgen

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

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

Diversification Opportunities for Massimo Group and Amgen

0.76

Correlation Coefficient

Massimo Group  Amgen

Poor diversification

The 3 months correlation between Massimo and Amgen is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Massimo Group Common and Amgen Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amgen Inc and Massimo Group 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 Massimo Group Common 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 Massimo Group i.e., Massimo Group and Amgen go up and down completely randomly.

Pair Corralation between Massimo Group and Amgen

Given the investment horizon of 90 days Massimo Group Common is expected to generate 3.6 times more return on investment than Amgen. However, Massimo Group is 3.6 times more volatile than Amgen Inc. It trades about -0.05 of its potential returns per unit of risk. Amgen Inc is currently generating about -0.17 per unit of risk. If you would invest  389.00  in Massimo Group Common on September 14, 2024 and sell it today you would lose (104.00) from holding Massimo Group Common or give up 26.74% of portfolio value over 90 days.

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

Massimo Group Common  vs.  Amgen Inc

Massimo Group Common

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Massimo Group Common has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Stock's primary indicators remain very healthy which may send shares a bit higher in January 2025. The recent disarray may also be a sign of long period up-swing for the firm investors.

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

Pair Trading with Massimo Group and Amgen

The main advantage of trading using opposite Massimo Group and Amgen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Massimo Group 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 Massimo Group Common 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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.