Correlation Between Celgene and Amgen
Can any of the company-specific risk be diversified away by investing in both Celgene 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 Celgene and Amgen into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Celgene and Amgen Inc, you can compare the effects of market volatilities on Celgene 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 Celgene with a short position of Amgen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Celgene and Amgen.
Diversification Opportunities for Celgene and Amgen
Pay attention - limited upside
The 3 months correlation between Celgene and Amgen is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Celgene and Amgen Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amgen Inc and Celgene 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 Celgene 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 Celgene i.e., Celgene and Amgen go up and down completely randomly.
Pair Corralation between Celgene and Amgen
If you would invest (100.00) in Celgene on January 26, 2024 and sell it today you would earn a total of 100.00 from holding Celgene 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 |
Celgene vs. Amgen Inc
Performance |
| Timeline |
| Celgene |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Amgen Inc |
Celgene and Amgen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Celgene and Amgen
The main advantage of trading using opposite Celgene and Amgen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Celgene 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.| Celgene vs. Hasbro Inc | Celgene vs. Orbit Garant Drilling | Celgene vs. Nabors Industries | Celgene vs. Academy Sports OutdoorsInc |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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