Correlation Between Amazon and Hawesko Holding
Can any of the company-specific risk be diversified away by investing in both Amazon and Hawesko Holding 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 Hawesko Holding into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Amazon Inc and Hawesko Holding AG, you can compare the effects of market volatilities on Amazon and Hawesko Holding 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 Hawesko Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amazon and Hawesko Holding.
Diversification Opportunities for Amazon and Hawesko Holding
-0.8 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Amazon and Hawesko is -0.8. Overlapping area represents the amount of risk that can be diversified away by holding Amazon Inc and Hawesko Holding AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hawesko Holding AG 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 Hawesko Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hawesko Holding AG has no effect on the direction of Amazon i.e., Amazon and Hawesko Holding go up and down completely randomly.
Pair Corralation between Amazon and Hawesko Holding
Given the investment horizon of 90 days Amazon Inc is expected to generate 0.92 times more return on investment than Hawesko Holding. However, Amazon Inc is 1.08 times less risky than Hawesko Holding. It trades about 0.1 of its potential returns per unit of risk. Hawesko Holding AG is currently generating about -0.03 per unit of risk. If you would invest 14,589 in Amazon Inc on September 4, 2024 and sell it today you would earn a total of 6,755 from holding Amazon Inc or generate 46.3% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 98.41% |
| Values | Daily Returns |
Amazon Inc vs. Hawesko Holding AG
Performance |
| Timeline |
| Amazon Inc |
| Hawesko Holding AG |
Amazon and Hawesko Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amazon and Hawesko Holding
The main advantage of trading using opposite Amazon and Hawesko Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amazon position performs unexpectedly, Hawesko Holding 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 Hawesko Holding will offset losses from the drop in Hawesko Holding's long position.The idea behind Amazon Inc and Hawesko Holding AG 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.| Hawesko Holding vs. MAVEN WIRELESS SWEDEN | Hawesko Holding vs. WillScot Mobile Mini | Hawesko Holding vs. FORMPIPE SOFTWARE AB | Hawesko Holding vs. KENEDIX OFFICE INV |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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