Correlation Between Amgen and KINDER
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By analyzing existing cross correlation between Amgen Inc and KINDER MORGAN INC, you can compare the effects of market volatilities on Amgen and KINDER 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 KINDER. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amgen and KINDER.
Diversification Opportunities for Amgen and KINDER
Weak diversification
The 3 months correlation between Amgen and KINDER is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding Amgen Inc and KINDER MORGAN INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KINDER MORGAN INC 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 KINDER. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KINDER MORGAN INC has no effect on the direction of Amgen i.e., Amgen and KINDER go up and down completely randomly.
Pair Corralation between Amgen and KINDER
Given the investment horizon of 90 days Amgen Inc is expected to under-perform the KINDER. In addition to that, Amgen is 1.68 times more volatile than KINDER MORGAN INC. It trades about -0.19 of its total potential returns per unit of risk. KINDER MORGAN INC is currently generating about 0.01 per unit of volatility. If you would invest 9,980 in KINDER MORGAN INC on September 24, 2024 and sell it today you would earn a total of 1.00 from holding KINDER MORGAN INC or generate 0.01% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 98.44% |
Values | Daily Returns |
Amgen Inc vs. KINDER MORGAN INC
Performance |
Timeline |
Amgen Inc |
KINDER MORGAN INC |
Amgen and KINDER Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Amgen and KINDER
The main advantage of trading using opposite Amgen and KINDER positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amgen position performs unexpectedly, KINDER 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 KINDER will offset losses from the drop in KINDER's long position.Amgen vs. Fate Therapeutics | Amgen vs. Sana Biotechnology | Amgen vs. Caribou Biosciences | Amgen vs. Arcus Biosciences |
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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 Stocks Directory module to find actively traded stocks across global markets.
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