Correlation Between AquaBounty Technologies and Amgen
Can any of the company-specific risk be diversified away by investing in both AquaBounty Technologies 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 AquaBounty Technologies and Amgen into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AquaBounty Technologies and Amgen Inc, you can compare the effects of market volatilities on AquaBounty Technologies 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 AquaBounty Technologies with a short position of Amgen. Check out your portfolio center. Please also check ongoing floating volatility patterns of AquaBounty Technologies and Amgen.
Diversification Opportunities for AquaBounty Technologies and Amgen
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between AquaBounty and Amgen is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding AquaBounty Technologies and Amgen Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amgen Inc and AquaBounty Technologies 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 AquaBounty Technologies 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 AquaBounty Technologies i.e., AquaBounty Technologies and Amgen go up and down completely randomly.
Pair Corralation between AquaBounty Technologies and Amgen
Considering the 90-day investment horizon AquaBounty Technologies is expected to under-perform the Amgen. In addition to that, AquaBounty Technologies is 2.14 times more volatile than Amgen Inc. It trades about -0.17 of its total potential returns per unit of risk. Amgen Inc is currently generating about -0.12 per unit of volatility. If you would invest 28,177 in Amgen Inc on January 26, 2024 and sell it today you would lose (876.00) from holding Amgen Inc or give up 3.11% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
AquaBounty Technologies vs. Amgen Inc
Performance |
| Timeline |
| AquaBounty Technologies |
| Amgen Inc |
AquaBounty Technologies and Amgen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AquaBounty Technologies and Amgen
The main advantage of trading using opposite AquaBounty Technologies and Amgen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AquaBounty Technologies 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.| AquaBounty Technologies vs. Atlantic Sapphire ASA | AquaBounty Technologies vs. Adecoagro SA | AquaBounty Technologies vs. Local Bounti Corp | AquaBounty Technologies vs. AgriFORCE Growing Systems |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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