Correlation Between Amazon and Tupperware Brands
Can any of the company-specific risk be diversified away by investing in both Amazon and Tupperware Brands 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 Tupperware Brands into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Amazon Inc and Tupperware Brands, you can compare the effects of market volatilities on Amazon and Tupperware Brands 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 Tupperware Brands. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amazon and Tupperware Brands.
Diversification Opportunities for Amazon and Tupperware Brands
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Amazon and Tupperware is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Amazon Inc and Tupperware Brands in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tupperware Brands 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 Tupperware Brands. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tupperware Brands has no effect on the direction of Amazon i.e., Amazon and Tupperware Brands go up and down completely randomly.
Pair Corralation between Amazon and Tupperware Brands
If you would invest 22,594 in Amazon Inc on November 18, 2024 and sell it today you would earn a total of 274.00 from holding Amazon Inc or generate 1.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Amazon Inc vs. Tupperware Brands
Performance |
| Timeline |
| Amazon Inc |
| Tupperware Brands |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
Amazon and Tupperware Brands Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amazon and Tupperware Brands
The main advantage of trading using opposite Amazon and Tupperware Brands positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amazon position performs unexpectedly, Tupperware Brands 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 Tupperware Brands will offset losses from the drop in Tupperware Brands' long position.The idea behind Amazon Inc and Tupperware Brands 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.| Tupperware Brands vs. Millennium Group International | Tupperware Brands vs. Sonoco Products | Tupperware Brands vs. Sealed Air | Tupperware Brands vs. Alliance Creative Gr |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
Other Complementary Tools
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios |