Correlation Between Amazon and Anaconda Mining
Can any of the company-specific risk be diversified away by investing in both Amazon and Anaconda Mining 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 Anaconda Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Amazon Inc and Anaconda Mining, you can compare the effects of market volatilities on Amazon and Anaconda Mining 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 Anaconda Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amazon and Anaconda Mining.
Diversification Opportunities for Amazon and Anaconda Mining
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Amazon and Anaconda is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Amazon Inc and Anaconda Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Anaconda Mining 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 Anaconda Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Anaconda Mining has no effect on the direction of Amazon i.e., Amazon and Anaconda Mining go up and down completely randomly.
Pair Corralation between Amazon and Anaconda Mining
If you would invest 9,158 in Amazon Inc on September 4, 2024 and sell it today you would earn a total of 12,186 from holding Amazon Inc or generate 133.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Amazon Inc vs. Anaconda Mining
Performance |
| Timeline |
| Amazon Inc |
| Anaconda Mining |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Amazon and Anaconda Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amazon and Anaconda Mining
The main advantage of trading using opposite Amazon and Anaconda Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amazon position performs unexpectedly, Anaconda Mining 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 Anaconda Mining will offset losses from the drop in Anaconda Mining's long position.The idea behind Amazon Inc and Anaconda Mining 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.| Anaconda Mining vs. Caribbean Utilities | Anaconda Mining vs. Canadian Utilities Limited | Anaconda Mining vs. Andlauer Healthcare Gr | Anaconda Mining vs. Nova Leap Health |
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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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