Correlation Between Aphria and Amgen
Can any of the company-specific risk be diversified away by investing in both Aphria 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 Aphria and Amgen into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aphria Inc and Amgen Inc, you can compare the effects of market volatilities on Aphria 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 Aphria with a short position of Amgen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aphria and Amgen.
Diversification Opportunities for Aphria and Amgen
Pay attention - limited upside
The 3 months correlation between Aphria and Amgen is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Aphria Inc and Amgen Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amgen Inc and Aphria 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 Aphria Inc 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 Aphria i.e., Aphria and Amgen go up and down completely randomly.
Pair Corralation between Aphria and Amgen
If you would invest (100.00) in Aphria Inc on January 24, 2024 and sell it today you would earn a total of 100.00 from holding Aphria Inc or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Aphria Inc vs. Amgen Inc
Performance |
| Timeline |
| Aphria Inc |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Amgen Inc |
Aphria and Amgen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aphria and Amgen
The main advantage of trading using opposite Aphria and Amgen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aphria 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.| Aphria vs. Fidus Investment Corp | Aphria vs. Ambipar Emergency Response | Aphria vs. Artisan Partners Asset | Aphria vs. RadNet Inc |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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