Correlation Between Sinopec Shanghai and Amgen

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

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

Diversification Opportunities for Sinopec Shanghai and Amgen

0.0

Correlation Coefficient

Sinopec Shanghai  Amgen

Pay attention - limited upside

The 3 months correlation between Sinopec and Amgen is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Sinopec Shanghai Petrochemical and Amgen Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amgen Inc and Sinopec Shanghai 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 Sinopec Shanghai Petrochemical 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 Sinopec Shanghai i.e., Sinopec Shanghai and Amgen go up and down completely randomly.

Pair Corralation between Sinopec Shanghai and Amgen

If you would invest  13.00  in Sinopec Shanghai Petrochemical on October 10, 2024 and sell it today you would earn a total of  1.00  from holding Sinopec Shanghai Petrochemical or generate 7.69% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	1.69%
Values	Daily Returns

Sinopec Shanghai Petrochemical  vs.  Amgen Inc

Sinopec Shanghai Pet

Risk-Adjusted Performance

3 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Sinopec Shanghai Petrochemical are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Despite nearly uncertain forward-looking indicators, Sinopec Shanghai reported solid returns over the last few months and may actually be approaching a breakup point.

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 comparatively stable technical and fundamental indicators, Amgen is not utilizing all of its potentials. The current stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with Sinopec Shanghai and Amgen

The main advantage of trading using opposite Sinopec Shanghai and Amgen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sinopec Shanghai 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 Sinopec Shanghai Petrochemical 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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.