Correlation Between Zane Interactive and Amgen

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

By analyzing existing cross correlation between Zane Interactive Publishing and Amgen Inc, you can compare the effects of market volatilities on Zane Interactive 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 Zane Interactive with a short position of Amgen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zane Interactive and Amgen.

Diversification Opportunities for Zane Interactive and Amgen

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Correlation Coefficient

Zane Interactive  Amgen

Pay attention - limited upside

The 3 months correlation between Zane and Amgen is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Zane Interactive Publishing and Amgen Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amgen Inc and Zane Interactive 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 Zane Interactive Publishing 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 Zane Interactive i.e., Zane Interactive and Amgen go up and down completely randomly.

Pair Corralation between Zane Interactive and Amgen

Given the investment horizon of 90 days Zane Interactive Publishing is expected to under-perform the Amgen. In addition to that, Zane Interactive is 3.03 times more volatile than Amgen Inc. It trades about -0.04 of its total potential returns per unit of risk. Amgen Inc is currently generating about 0.02 per unit of volatility. If you would invest  24,710  in Amgen Inc on September 15, 2024 and sell it today you would earn a total of  2,352  from holding Amgen Inc or generate 9.52% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	99.8%
Values	Daily Returns

Zane Interactive Publishing  vs.  Amgen Inc

Zane Interactive Pub

Risk-Adjusted Performance

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Very Weak

Over the last 90 days Zane Interactive Publishing has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound basic indicators, Zane Interactive is not utilizing all of its potentials. The recent stock price tumult, may contribute to shorter-term losses for the shareholders.

Amgen Inc

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Amgen Inc has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of inconsistent performance in the last few months, the Stock's technical and fundamental indicators remain very healthy which may send shares a bit higher in January 2025. The recent disarray may also be a sign of long period up-swing for the firm investors.

Pair Trading with Zane Interactive and Amgen

The main advantage of trading using opposite Zane Interactive and Amgen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zane Interactive 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.

The idea behind Zane Interactive Publishing and Amgen Inc 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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..