Correlation Between Amazon and Komercn Banka
Can any of the company-specific risk be diversified away by investing in both Amazon and Komercn Banka 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 Amazon and Komercn Banka into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Amazon Inc and Komercn banka as, you can compare the effects of market volatilities on Amazon and Komercn Banka 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 Amazon with a short position of Komercn Banka. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amazon and Komercn Banka.
Diversification Opportunities for Amazon and Komercn Banka
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Amazon and Komercn is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Amazon Inc and Komercn banka as in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Komercn banka as and Amazon 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 Amazon Inc are associated (or correlated) with Komercn Banka. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Komercn banka as has no effect on the direction of Amazon i.e., Amazon and Komercn Banka go up and down completely randomly.
Pair Corralation between Amazon and Komercn Banka
Assuming the 90 days horizon Amazon Inc is expected to generate 1.6 times more return on investment than Komercn Banka. However, Amazon is 1.6 times more volatile than Komercn banka as. It trades about 0.08 of its potential returns per unit of risk. Komercn banka as is currently generating about 0.03 per unit of risk. If you would invest 16,338 in Amazon Inc on September 1, 2024 and sell it today you would earn a total of 3,344 from holding Amazon Inc or generate 20.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 99.24% |
| Values | Daily Returns |
Amazon Inc vs. Komercn banka as
Performance |
| Timeline |
| Amazon Inc |
| Komercn banka as |
Amazon and Komercn Banka Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amazon and Komercn Banka
The main advantage of trading using opposite Amazon and Komercn Banka positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amazon position performs unexpectedly, Komercn Banka 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 Komercn Banka will offset losses from the drop in Komercn Banka's long position.| Amazon vs. SEKISUI CHEMICAL | Amazon vs. UNITED UTILITIES GR | Amazon vs. Algonquin Power Utilities | Amazon vs. Aluminum of |
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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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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