Correlation Between Amgen and Cadus
Can any of the company-specific risk be diversified away by investing in both Amgen and Cadus 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 Cadus into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Amgen Inc and Cadus, you can compare the effects of market volatilities on Amgen and Cadus 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 Cadus. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amgen and Cadus.
Diversification Opportunities for Amgen and Cadus
Pay attention - limited upside
The 3 months correlation between Amgen and Cadus is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Amgen Inc and Cadus in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cadus 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 Cadus. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cadus has no effect on the direction of Amgen i.e., Amgen and Cadus go up and down completely randomly.
Pair Corralation between Amgen and Cadus
If you would invest 22,175 in Amgen Inc on January 26, 2024 and sell it today you would earn a total of 5,126 from holding Amgen Inc or generate 23.12% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 0.0% |
Values | Daily Returns |
Amgen Inc vs. Cadus
Performance |
Timeline |
Amgen Inc |
Cadus |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Amgen and Cadus Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Amgen and Cadus
The main advantage of trading using opposite Amgen and Cadus positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amgen position performs unexpectedly, Cadus 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 Cadus will offset losses from the drop in Cadus' long position.Amgen vs. Terns Pharmaceuticals | Amgen vs. Amylyx Pharmaceuticals | Amgen vs. Acumen Pharmaceuticals | Amgen vs. Inozyme PharmaInc |
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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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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