Correlation Between Amazon CDR and Asian Television
Can any of the company-specific risk be diversified away by investing in both Amazon CDR and Asian Television 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 Asian Television into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Amazon CDR and Asian Television Network, you can compare the effects of market volatilities on Amazon CDR and Asian Television 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 Asian Television. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amazon CDR and Asian Television.
Diversification Opportunities for Amazon CDR and Asian Television
-0.77 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Amazon and Asian is -0.77. Overlapping area represents the amount of risk that can be diversified away by holding Amazon CDR and Asian Television Network in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Asian Television Network 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 Asian Television. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Asian Television Network has no effect on the direction of Amazon CDR i.e., Amazon CDR and Asian Television go up and down completely randomly.
Pair Corralation between Amazon CDR and Asian Television
Assuming the 90 days trading horizon Amazon CDR is expected to generate 1.8 times less return on investment than Asian Television. But when comparing it to its historical volatility, Amazon CDR is 5.91 times less risky than Asian Television. It trades about 0.09 of its potential returns per unit of risk. Asian Television Network is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 20.00 in Asian Television Network on August 27, 2024 and sell it today you would lose (12.00) from holding Asian Television Network or give up 60.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Amazon CDR vs. Asian Television Network
Performance |
| Timeline |
| Amazon CDR |
| Asian Television Network |
Amazon CDR and Asian Television Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amazon CDR and Asian Television
The main advantage of trading using opposite Amazon CDR and Asian Television positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amazon CDR position performs unexpectedly, Asian Television 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 Asian Television will offset losses from the drop in Asian Television's long position.| Amazon CDR vs. NVIDIA CDR | Amazon CDR vs. Apple Inc CDR | Amazon CDR vs. Microsoft Corp CDR | Amazon CDR vs. Alphabet Inc CDR |
| Asian Television vs. Velan Inc | Asian Television vs. Dorel Industries | Asian Television vs. Goodfellow | Asian Television vs. iShares Canadian HYBrid |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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