Correlation Between Amazon and ALIOR BANK
Can any of the company-specific risk be diversified away by investing in both Amazon and ALIOR BANK 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 ALIOR BANK into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Amazon Inc and ALIOR BANK, you can compare the effects of market volatilities on Amazon and ALIOR BANK 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 ALIOR BANK. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amazon and ALIOR BANK.
Diversification Opportunities for Amazon and ALIOR BANK
-0.49 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Amazon and ALIOR is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding Amazon Inc and ALIOR BANK in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ALIOR BANK 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 ALIOR BANK. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ALIOR BANK has no effect on the direction of Amazon i.e., Amazon and ALIOR BANK go up and down completely randomly.
Pair Corralation between Amazon and ALIOR BANK
Assuming the 90 days trading horizon Amazon Inc is expected to generate 0.76 times more return on investment than ALIOR BANK. However, Amazon Inc is 1.32 times less risky than ALIOR BANK. It trades about 0.16 of its potential returns per unit of risk. ALIOR BANK is currently generating about 0.11 per unit of risk. If you would invest 18,260 in Amazon Inc on September 2, 2024 and sell it today you would earn a total of 1,280 from holding Amazon Inc or generate 7.01% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Amazon Inc vs. ALIOR BANK
Performance |
| Timeline |
| Amazon Inc |
| ALIOR BANK |
Amazon and ALIOR BANK Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amazon and ALIOR BANK
The main advantage of trading using opposite Amazon and ALIOR BANK positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amazon position performs unexpectedly, ALIOR BANK 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 ALIOR BANK will offset losses from the drop in ALIOR BANK's long position.| Amazon vs. Richardson Electronics | Amazon vs. Mobilezone Holding AG | Amazon vs. METHODE ELECTRONICS | Amazon vs. Arrow Electronics |
| ALIOR BANK vs. IMAGIN MEDICAL INC | ALIOR BANK vs. Japan Medical Dynamic | ALIOR BANK vs. MEDICAL FACILITIES NEW | ALIOR BANK vs. ETFS Coffee ETC |
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
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites |