Correlation Between Amazon and Keeley International
Can any of the company-specific risk be diversified away by investing in both Amazon and Keeley International 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 Keeley International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Amazon Inc and Keeley International Small, you can compare the effects of market volatilities on Amazon and Keeley International 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 Keeley International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amazon and Keeley International.
Diversification Opportunities for Amazon and Keeley International
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Amazon and Keeley is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Amazon Inc and Keeley International Small in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Keeley International 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 Keeley International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Keeley International has no effect on the direction of Amazon i.e., Amazon and Keeley International go up and down completely randomly.
Pair Corralation between Amazon and Keeley International
If you would invest 8,379 in Amazon Inc on September 12, 2024 and sell it today you would earn a total of 14,125 from holding Amazon Inc or generate 168.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Amazon Inc vs. Keeley International Small
Performance |
| Timeline |
| Amazon Inc |
| Keeley International |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Amazon and Keeley International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amazon and Keeley International
The main advantage of trading using opposite Amazon and Keeley International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amazon position performs unexpectedly, Keeley International 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 Keeley International will offset losses from the drop in Keeley International's long position.The idea behind Amazon Inc and Keeley International Small 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.| Keeley International vs. T Rowe Price | Keeley International vs. Old Westbury Municipal | Keeley International vs. Dws Government Money | Keeley International vs. Ab Impact Municipal |
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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