Correlation Between Marchex and AMAZONCOM
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By analyzing existing cross correlation between Marchex and AMAZONCOM INC, you can compare the effects of market volatilities on Marchex 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 Marchex with a short position of AMAZONCOM. Check out your portfolio center. Please also check ongoing floating volatility patterns of Marchex and AMAZONCOM.
Diversification Opportunities for Marchex and AMAZONCOM
Modest diversification
The 3 months correlation between Marchex and AMAZONCOM is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding Marchex and AMAZONCOM INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AMAZONCOM INC and Marchex 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 Marchex 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 Marchex i.e., Marchex and AMAZONCOM go up and down completely randomly.
Pair Corralation between Marchex and AMAZONCOM
Given the investment horizon of 90 days Marchex is expected to generate 2.45 times more return on investment than AMAZONCOM. However, Marchex is 2.45 times more volatile than AMAZONCOM INC. It trades about 0.06 of its potential returns per unit of risk. AMAZONCOM INC is currently generating about -0.17 per unit of risk. If you would invest 176.00 in Marchex on September 2, 2024 and sell it today you would earn a total of 6.00 from holding Marchex or generate 3.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Marchex vs. AMAZONCOM INC
Performance |
| Timeline |
| Marchex |
| AMAZONCOM INC |
Marchex and AMAZONCOM Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Marchex and AMAZONCOM
The main advantage of trading using opposite Marchex and AMAZONCOM positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Marchex 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.| Marchex vs. Entravision Communications | Marchex vs. Direct Digital Holdings | Marchex vs. Cimpress NV | Marchex vs. Townsquare Media |
| AMAZONCOM vs. Highway Holdings Limited | AMAZONCOM vs. Cimpress NV | AMAZONCOM vs. Marchex | AMAZONCOM vs. Fluent Inc |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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