Correlation Between Amazon and HYBRIGENICS
Can any of the company-specific risk be diversified away by investing in both Amazon and HYBRIGENICS 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 HYBRIGENICS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Amazon Inc and HYBRIGENICS A , you can compare the effects of market volatilities on Amazon and HYBRIGENICS 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 HYBRIGENICS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amazon and HYBRIGENICS.
Diversification Opportunities for Amazon and HYBRIGENICS
-0.73 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Amazon and HYBRIGENICS is -0.73. Overlapping area represents the amount of risk that can be diversified away by holding Amazon Inc and HYBRIGENICS A in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HYBRIGENICS A 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 HYBRIGENICS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HYBRIGENICS A has no effect on the direction of Amazon i.e., Amazon and HYBRIGENICS go up and down completely randomly.
Pair Corralation between Amazon and HYBRIGENICS
Assuming the 90 days trading horizon Amazon Inc is expected to generate 0.21 times more return on investment than HYBRIGENICS. However, Amazon Inc is 4.68 times less risky than HYBRIGENICS. It trades about 0.09 of its potential returns per unit of risk. HYBRIGENICS A is currently generating about -0.18 per unit of risk. If you would invest 21,745 in Amazon Inc on October 24, 2024 and sell it today you would earn a total of 430.00 from holding Amazon Inc or generate 1.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 94.44% |
| Values | Daily Returns |
Amazon Inc vs. HYBRIGENICS A
Performance |
| Timeline |
| Amazon Inc |
| HYBRIGENICS A |
Amazon and HYBRIGENICS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amazon and HYBRIGENICS
The main advantage of trading using opposite Amazon and HYBRIGENICS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amazon position performs unexpectedly, HYBRIGENICS 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 HYBRIGENICS will offset losses from the drop in HYBRIGENICS's long position.| Amazon vs. AEGEAN AIRLINES | Amazon vs. American Airlines Group | Amazon vs. International Consolidated Airlines | Amazon vs. ELECTRONIC ARTS |
| HYBRIGENICS vs. Applied Materials | HYBRIGENICS vs. Plastic Omnium | HYBRIGENICS vs. FIREWEED METALS P | HYBRIGENICS vs. VULCAN MATERIALS |
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 Stocks Directory module to find actively traded stocks across global markets.
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