Correlation Between Vascular Biogenics and Amgen
Can any of the company-specific risk be diversified away by investing in both Vascular Biogenics 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 Vascular Biogenics and Amgen into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Vascular Biogenics and Amgen Inc, you can compare the effects of market volatilities on Vascular Biogenics 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 Vascular Biogenics with a short position of Amgen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vascular Biogenics and Amgen.
Diversification Opportunities for Vascular Biogenics and Amgen
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Vascular and Amgen is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Vascular Biogenics and Amgen Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amgen Inc and Vascular Biogenics 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 Vascular Biogenics 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 Vascular Biogenics i.e., Vascular Biogenics and Amgen go up and down completely randomly.
Pair Corralation between Vascular Biogenics and Amgen
Given the investment horizon of 90 days Vascular Biogenics is expected to under-perform the Amgen. In addition to that, Vascular Biogenics is 5.7 times more volatile than Amgen Inc. It trades about -0.03 of its total potential returns per unit of risk. Amgen Inc is currently generating about 0.04 per unit of volatility. If you would invest 21,973 in Amgen Inc on January 25, 2024 and sell it today you would earn a total of 5,500 from holding Amgen Inc or generate 25.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 73.74% |
| Values | Daily Returns |
Vascular Biogenics vs. Amgen Inc
Performance |
| Timeline |
| Vascular Biogenics |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Amgen Inc |
Vascular Biogenics and Amgen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Vascular Biogenics and Amgen
The main advantage of trading using opposite Vascular Biogenics and Amgen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vascular Biogenics 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.| Vascular Biogenics vs. Revelation Biosciences | Vascular Biogenics vs. Zura Bio Limited | Vascular Biogenics vs. Phio Pharmaceuticals Corp | Vascular Biogenics vs. ZyVersa Therapeutics |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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