Correlation Between Amgen and Full Circle

Can any of the company-specific risk be diversified away by investing in both Amgen and Full Circle 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 Full Circle into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Amgen Inc and Full Circle Capital, you can compare the effects of market volatilities on Amgen and Full Circle 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 Full Circle. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amgen and Full Circle.

Diversification Opportunities for Amgen and Full Circle

0.0

Correlation Coefficient

Amgen  Full Circle

Pay attention - limited upside

The 3 months correlation between Amgen and Full is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Amgen Inc and Full Circle Capital in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Full Circle Capital 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 Full Circle. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Full Circle Capital has no effect on the direction of Amgen i.e., Amgen and Full Circle go up and down completely randomly.

Pair Corralation between Amgen and Full Circle

If you would invest  29,737  in Amgen Inc on March 7, 2024 and sell it today you would earn a total of  1,000.00  from holding Amgen Inc or generate 3.36% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Amgen Inc  vs.  Full Circle Capital

Amgen Inc

Risk-Adjusted Performance

8 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Amgen Inc are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. In spite of very fragile technical and fundamental indicators, Amgen displayed solid returns over the last few months and may actually be approaching a breakup point.

Full Circle Capital

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Full Circle Capital has generated negative risk-adjusted returns adding no value to investors with long positions. Despite quite persistent essential indicators, Full Circle is not utilizing all of its potentials. The current stock price mess, may contribute to short-term losses for the institutional investors.

Pair Trading with Amgen and Full Circle

The main advantage of trading using opposite Amgen and Full Circle positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amgen position performs unexpectedly, Full Circle 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 Full Circle will offset losses from the drop in Full Circle's long position.

The idea behind Amgen Inc and Full Circle Capital pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.