Correlation Between Amgen and Qtec First

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Can any of the company-specific risk be diversified away by investing in both Amgen and Qtec First 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 Qtec First into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Amgen Inc and Qtec First Trust, you can compare the effects of market volatilities on Amgen and Qtec First 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 Qtec First. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amgen and Qtec First.

Diversification Opportunities for Amgen and Qtec First

0.22
  Correlation Coefficient

Modest diversification

The 3 months correlation between Amgen and Qtec First is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding Amgen Inc and Qtec First Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Qtec First Trust 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 Qtec First. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Qtec First Trust has no effect on the direction of Amgen i.e., Amgen and Qtec First go up and down completely randomly.

Pair Corralation between Amgen and Qtec First

Given the investment horizon of 90 days Amgen Inc is expected to under-perform the Qtec First. But the stock apears to be less risky and, when comparing its historical volatility, Amgen Inc is 1.13 times less risky than Qtec First. The stock trades about -0.05 of its potential returns per unit of risk. The Qtec First Trust is currently generating about -0.03 of returns per unit of risk over similar time horizon. If you would invest  5,441  in Qtec First Trust on July 5, 2022 and sell it today you would lose (316.00)  from holding Qtec First Trust or give up 5.81% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthVery Weak
Accuracy100.0%
ValuesDaily Returns

Amgen Inc  vs.  Qtec First Trust

 Performance (%) 
       Timeline  
Amgen Inc 
Amgen Performance
0 of 100
Over the last 90 days Amgen Inc has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest conflicting performance, the Stock's technical and fundamental indicators remain persistent and the latest mess on Wall Street may also be a sign of long-standing gains for the company institutional investors.

Amgen Price Channel

Qtec First Trust 
Qtec First Performance
1 of 100
Compared to the overall equity markets, risk-adjusted returns on investments in Qtec First Trust are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite somewhat strong fundamental drivers, Qtec First is not utilizing all of its potentials. The latest stock price disturbance, may contribute to short-term losses for the investors.

Qtec First Price Channel

Amgen and Qtec First Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Amgen and Qtec First

The main advantage of trading using opposite Amgen and Qtec First positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amgen position performs unexpectedly, Qtec First 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 Qtec First will offset losses from the drop in Qtec First's long position.
Amgen vs. Amazon Inc
The idea behind Amgen Inc and Qtec First Trust 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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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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.

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