Correlation Between Applied Blockchain and AMAZONCOM
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By analyzing existing cross correlation between Applied Blockchain and AMAZONCOM INC, you can compare the effects of market volatilities on Applied Blockchain and AMAZONCOM 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 Applied Blockchain with a short position of AMAZONCOM. Check out your portfolio center. Please also check ongoing floating volatility patterns of Applied Blockchain and AMAZONCOM.
Diversification Opportunities for Applied Blockchain and AMAZONCOM
-0.58 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Applied and AMAZONCOM is -0.58. Overlapping area represents the amount of risk that can be diversified away by holding Applied Blockchain and AMAZONCOM INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AMAZONCOM INC and Applied Blockchain 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 Applied Blockchain are associated (or correlated) with AMAZONCOM. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AMAZONCOM INC has no effect on the direction of Applied Blockchain i.e., Applied Blockchain and AMAZONCOM go up and down completely randomly.
Pair Corralation between Applied Blockchain and AMAZONCOM
Given the investment horizon of 90 days Applied Blockchain is expected to generate 3.29 times more return on investment than AMAZONCOM. However, Applied Blockchain is 3.29 times more volatile than AMAZONCOM INC. It trades about 0.15 of its potential returns per unit of risk. AMAZONCOM INC is currently generating about -0.03 per unit of risk. If you would invest 758.00 in Applied Blockchain on September 12, 2024 and sell it today you would earn a total of 144.00 from holding Applied Blockchain or generate 19.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Applied Blockchain vs. AMAZONCOM INC
Performance |
| Timeline |
| Applied Blockchain |
| AMAZONCOM INC |
Applied Blockchain and AMAZONCOM Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Applied Blockchain and AMAZONCOM
The main advantage of trading using opposite Applied Blockchain and AMAZONCOM positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Applied Blockchain position performs unexpectedly, AMAZONCOM 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 AMAZONCOM will offset losses from the drop in AMAZONCOM's long position.| Applied Blockchain vs. Magic Empire Global | Applied Blockchain vs. Zhong Yang Financial | Applied Blockchain vs. Netcapital | Applied Blockchain vs. Lazard |
| AMAZONCOM vs. AEP TEX INC | AMAZONCOM vs. US BANK NATIONAL | AMAZONCOM vs. Applied Blockchain | AMAZONCOM vs. BigBearai Holdings |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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