Correlation Between AEON STORES and Amazon
Can any of the company-specific risk be diversified away by investing in both AEON STORES and Amazon 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 AEON STORES and Amazon into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AEON STORES and Amazon Inc, you can compare the effects of market volatilities on AEON STORES and Amazon 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 AEON STORES with a short position of Amazon. Check out your portfolio center. Please also check ongoing floating volatility patterns of AEON STORES and Amazon.
Diversification Opportunities for AEON STORES and Amazon
-0.26 | Correlation Coefficient |
Very good diversification
The 3 months correlation between AEON and Amazon is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding AEON STORES and Amazon Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amazon Inc and AEON STORES 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 AEON STORES are associated (or correlated) with Amazon. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amazon Inc has no effect on the direction of AEON STORES i.e., AEON STORES and Amazon go up and down completely randomly.
Pair Corralation between AEON STORES and Amazon
If you would invest 20,340 in Amazon Inc on September 14, 2024 and sell it today you would earn a total of 1,505 from holding Amazon Inc or generate 7.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
AEON STORES vs. Amazon Inc
Performance |
| Timeline |
| AEON STORES |
| Amazon Inc |
AEON STORES and Amazon Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AEON STORES and Amazon
The main advantage of trading using opposite AEON STORES and Amazon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AEON STORES position performs unexpectedly, Amazon 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 Amazon will offset losses from the drop in Amazon's long position.| AEON STORES vs. GREENX METALS LTD | AEON STORES vs. SCANDMEDICAL SOLDK 040 | AEON STORES vs. CompuGroup Medical SE | AEON STORES vs. Virtus Investment Partners |
| Amazon vs. Retail Estates NV | Amazon vs. Vastned Retail NV | Amazon vs. AEON STORES | Amazon vs. SPARTAN STORES |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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