Correlation Between Amazon and Coronation Financial
Specify exactly 2 symbols:
By analyzing existing cross correlation between Amazon Inc and Coronation Financial, you can compare the effects of market volatilities on Amazon and Coronation Financial 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 Coronation Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amazon and Coronation Financial.
Diversification Opportunities for Amazon and Coronation Financial
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Amazon and Coronation is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Amazon Inc and Coronation Financial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Coronation Financial 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 Coronation Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Coronation Financial has no effect on the direction of Amazon i.e., Amazon and Coronation Financial go up and down completely randomly.
Pair Corralation between Amazon and Coronation Financial
Given the investment horizon of 90 days Amazon Inc is expected to generate 1.73 times more return on investment than Coronation Financial. However, Amazon is 1.73 times more volatile than Coronation Financial. It trades about 0.09 of its potential returns per unit of risk. Coronation Financial is currently generating about 0.06 per unit of risk. If you would invest 9,249 in Amazon Inc on September 3, 2024 and sell it today you would earn a total of 11,540 from holding Amazon Inc or generate 124.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 98.99% |
| Values | Daily Returns |
Amazon Inc vs. Coronation Financial
Performance |
| Timeline |
| Amazon Inc |
| Coronation Financial |
Amazon and Coronation Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amazon and Coronation Financial
The main advantage of trading using opposite Amazon and Coronation Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amazon position performs unexpectedly, Coronation Financial 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 Coronation Financial will offset losses from the drop in Coronation Financial's long position.The idea behind Amazon Inc and Coronation Financial pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Coronation Financial vs. Coronation Balanced Plus | Coronation Financial vs. Coronation Industrial | Coronation Financial vs. Coronation Capital Plus | Coronation Financial vs. Coronation Global Equity |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
Other Complementary Tools
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk |