Correlation Between Amazon and Allianzgi Global
Can any of the company-specific risk be diversified away by investing in both Amazon and Allianzgi Global 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 Allianzgi Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Amazon Inc and Allianzgi Global Water, you can compare the effects of market volatilities on Amazon and Allianzgi Global 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 Allianzgi Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amazon and Allianzgi Global.
Diversification Opportunities for Amazon and Allianzgi Global
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Amazon and Allianzgi is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding Amazon Inc and Allianzgi Global Water in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Allianzgi Global Water 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 Allianzgi Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Allianzgi Global Water has no effect on the direction of Amazon i.e., Amazon and Allianzgi Global go up and down completely randomly.
Pair Corralation between Amazon and Allianzgi Global
If you would invest 18,366 in Amazon Inc on September 12, 2024 and sell it today you would earn a total of 4,138 from holding Amazon Inc or generate 22.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 0.8% |
| Values | Daily Returns |
Amazon Inc vs. Allianzgi Global Water
Performance |
| Timeline |
| Amazon Inc |
| Allianzgi Global Water |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Amazon and Allianzgi Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amazon and Allianzgi Global
The main advantage of trading using opposite Amazon and Allianzgi Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amazon position performs unexpectedly, Allianzgi Global 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 Allianzgi Global will offset losses from the drop in Allianzgi Global's long position.The idea behind Amazon Inc and Allianzgi Global Water 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.| Allianzgi Global vs. Jhancock Disciplined Value | Allianzgi Global vs. Dodge Cox Stock | Allianzgi Global vs. Transamerica Large Cap | Allianzgi Global vs. Fidelity Series 1000 |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
Other Complementary Tools
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Commodity Directory Find actively traded commodities issued by global exchanges |