Correlation Between Amazon and SLIGRO FOOD
Can any of the company-specific risk be diversified away by investing in both Amazon and SLIGRO FOOD 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 SLIGRO FOOD into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Amazon Inc and SLIGRO FOOD GROUP, you can compare the effects of market volatilities on Amazon and SLIGRO FOOD 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 SLIGRO FOOD. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amazon and SLIGRO FOOD.
Diversification Opportunities for Amazon and SLIGRO FOOD
-0.9 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Amazon and SLIGRO is -0.9. Overlapping area represents the amount of risk that can be diversified away by holding Amazon Inc and SLIGRO FOOD GROUP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SLIGRO FOOD GROUP 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 SLIGRO FOOD. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SLIGRO FOOD GROUP has no effect on the direction of Amazon i.e., Amazon and SLIGRO FOOD go up and down completely randomly.
Pair Corralation between Amazon and SLIGRO FOOD
Assuming the 90 days trading horizon Amazon Inc is expected to generate 2.11 times more return on investment than SLIGRO FOOD. However, Amazon is 2.11 times more volatile than SLIGRO FOOD GROUP. It trades about 0.21 of its potential returns per unit of risk. SLIGRO FOOD GROUP is currently generating about -0.33 per unit of risk. If you would invest 17,898 in Amazon Inc on August 31, 2024 and sell it today you would earn a total of 1,802 from holding Amazon Inc or generate 10.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Amazon Inc vs. SLIGRO FOOD GROUP
Performance |
| Timeline |
| Amazon Inc |
| SLIGRO FOOD GROUP |
Amazon and SLIGRO FOOD Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amazon and SLIGRO FOOD
The main advantage of trading using opposite Amazon and SLIGRO FOOD positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amazon position performs unexpectedly, SLIGRO FOOD 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 SLIGRO FOOD will offset losses from the drop in SLIGRO FOOD's long position.| Amazon vs. REVO INSURANCE SPA | Amazon vs. United Insurance Holdings | Amazon vs. Ping An Insurance | Amazon vs. Direct Line Insurance |
| SLIGRO FOOD vs. SIVERS SEMICONDUCTORS AB | SLIGRO FOOD vs. Darden Restaurants | SLIGRO FOOD vs. Reliance Steel Aluminum | SLIGRO FOOD vs. Q2M Managementberatung AG |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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