Correlation Between Avita Medical and Amgen
Can any of the company-specific risk be diversified away by investing in both Avita Medical 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 Avita Medical and Amgen into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Avita Medical and Amgen Inc, you can compare the effects of market volatilities on Avita Medical 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 Avita Medical with a short position of Amgen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Avita Medical and Amgen.
Diversification Opportunities for Avita Medical and Amgen
-0.63 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Avita and Amgen is -0.63. Overlapping area represents the amount of risk that can be diversified away by holding Avita Medical and Amgen Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amgen Inc and Avita Medical 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 Avita Medical 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 Avita Medical i.e., Avita Medical and Amgen go up and down completely randomly.
Pair Corralation between Avita Medical and Amgen
Assuming the 90 days trading horizon Avita Medical is expected to under-perform the Amgen. In addition to that, Avita Medical is 2.93 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 0.18 per unit of volatility. If you would invest 28,359 in Amgen Inc on August 28, 2025 and sell it today you would earn a total of 6,079 from holding Amgen Inc or generate 21.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 98.46% |
| Values | Daily Returns |
Avita Medical vs. Amgen Inc
Performance |
| Timeline |
| Avita Medical |
| Amgen Inc |
Avita Medical and Amgen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Avita Medical and Amgen
The main advantage of trading using opposite Avita Medical and Amgen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Avita Medical 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.| Avita Medical vs. Newmont | Avita Medical vs. RIO Tinto | Avita Medical vs. Block, Inc | Avita Medical vs. Alcoa |
| Amgen vs. National Beverage Corp | Amgen vs. Konoike Transport CoLtd | Amgen vs. CanSino Biologics | Amgen vs. Young Cos Brewery |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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