Correlation Between Amazon and La Comer
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By analyzing existing cross correlation between Amazon Inc and La Comer SAB, you can compare the effects of market volatilities on Amazon and La Comer 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 La Comer. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amazon and La Comer.
Diversification Opportunities for Amazon and La Comer
Pay attention - limited upside
The 3 months correlation between Amazon and LACOMERUBC is -0.74. Overlapping area represents the amount of risk that can be diversified away by holding Amazon Inc and La Comer SAB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on La Comer SAB 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 La Comer. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of La Comer SAB has no effect on the direction of Amazon i.e., Amazon and La Comer go up and down completely randomly.
Pair Corralation between Amazon and La Comer
Assuming the 90 days trading horizon Amazon Inc is expected to generate 0.8 times more return on investment than La Comer. However, Amazon Inc is 1.25 times less risky than La Comer. It trades about 0.24 of its potential returns per unit of risk. La Comer SAB is currently generating about 0.09 per unit of risk. If you would invest 452,798 in Amazon Inc on November 2, 2024 and sell it today you would earn a total of 30,788 from holding Amazon Inc or generate 6.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Amazon Inc vs. La Comer SAB
Performance |
| Timeline |
| Amazon Inc |
| La Comer SAB |
Amazon and La Comer Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amazon and La Comer
The main advantage of trading using opposite Amazon and La Comer positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amazon position performs unexpectedly, La Comer 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 La Comer will offset losses from the drop in La Comer's long position.| Amazon vs. GMxico Transportes SAB | Amazon vs. DXC Technology | Amazon vs. Ameriprise Financial | Amazon vs. Taiwan Semiconductor Manufacturing |
| La Comer vs. Grupo Comercial Chedraui | La Comer vs. Gentera SAB de | La Comer vs. El Puerto de | La Comer vs. Organizacin Soriana S |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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