Correlation Between 3M and AMGEN
Specify exactly 2 symbols:
By analyzing existing cross correlation between 3M Company and AMGEN INC, you can compare the effects of market volatilities on 3M 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 3M with a short position of AMGEN. Check out your portfolio center. Please also check ongoing floating volatility patterns of 3M and AMGEN.
Diversification Opportunities for 3M and AMGEN
Pay attention - limited upside
The 3 months correlation between 3M and AMGEN is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding 3M Company and AMGEN INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AMGEN INC and 3M 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 3M Company 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 3M i.e., 3M and AMGEN go up and down completely randomly.
Pair Corralation between 3M and AMGEN
If you would invest 8,197 in 3M Company on March 12, 2024 and sell it today you would earn a total of 1,869 from holding 3M Company or generate 22.8% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 1.59% |
Values | Daily Returns |
3M Company vs. AMGEN INC
Performance |
Timeline |
3M Company |
AMGEN INC |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
3M and AMGEN Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with 3M and AMGEN
The main advantage of trading using opposite 3M and AMGEN positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 3M 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.3M vs. MDU Resources Group | 3M vs. Valmont Industries | 3M vs. Griffon | 3M vs. Brookfield Business Partners |
AMGEN vs. Avis Budget Group | AMGEN vs. Cheniere Energy Partners | AMGEN vs. Ecoloclean Industrs | AMGEN vs. Herc Holdings |
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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
Other Complementary Tools
Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges |