Correlation Between Amazon CDR and Maple Peak
Can any of the company-specific risk be diversified away by investing in both Amazon CDR and Maple Peak 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 CDR and Maple Peak into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Amazon CDR and Maple Peak Investments, you can compare the effects of market volatilities on Amazon CDR and Maple Peak 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 CDR with a short position of Maple Peak. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amazon CDR and Maple Peak.
Diversification Opportunities for Amazon CDR and Maple Peak
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Amazon and Maple is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Amazon CDR and Maple Peak Investments in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Maple Peak Investments and Amazon CDR 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 CDR are associated (or correlated) with Maple Peak. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Maple Peak Investments has no effect on the direction of Amazon CDR i.e., Amazon CDR and Maple Peak go up and down completely randomly.
Pair Corralation between Amazon CDR and Maple Peak
Assuming the 90 days trading horizon Amazon CDR is expected to generate 3.88 times less return on investment than Maple Peak. But when comparing it to its historical volatility, Amazon CDR is 7.4 times less risky than Maple Peak. It trades about 0.09 of its potential returns per unit of risk. Maple Peak Investments is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 1.00 in Maple Peak Investments on September 1, 2024 and sell it today you would earn a total of 0.00 from holding Maple Peak Investments or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Amazon CDR vs. Maple Peak Investments
Performance |
| Timeline |
| Amazon CDR |
| Maple Peak Investments |
Amazon CDR and Maple Peak Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amazon CDR and Maple Peak
The main advantage of trading using opposite Amazon CDR and Maple Peak positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amazon CDR position performs unexpectedly, Maple Peak 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 Maple Peak will offset losses from the drop in Maple Peak's long position.| Amazon CDR vs. iShares Canadian HYBrid | Amazon CDR vs. Altagas Cum Red | Amazon CDR vs. European Residential Real | Amazon CDR vs. iShares Fundamental Hedged |
| Maple Peak vs. Metalero Mining Corp | Maple Peak vs. Constellation Software | Maple Peak vs. Caribbean Utilities | Maple Peak vs. Nicola Mining |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
Other Complementary Tools
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum |