Correlation Between Monster Beverage and AMAZON
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By analyzing existing cross correlation between Monster Beverage Corp and AMAZON INC 3875, you can compare the effects of market volatilities on Monster Beverage 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 Monster Beverage with a short position of AMAZON. Check out your portfolio center. Please also check ongoing floating volatility patterns of Monster Beverage and AMAZON.
Diversification Opportunities for Monster Beverage and AMAZON
0.51 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Monster and AMAZON is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding Monster Beverage Corp and AMAZON INC 3875 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AMAZON INC 3875 and Monster Beverage 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 Monster Beverage Corp 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 3875 has no effect on the direction of Monster Beverage i.e., Monster Beverage and AMAZON go up and down completely randomly.
Pair Corralation between Monster Beverage and AMAZON
Given the investment horizon of 90 days Monster Beverage Corp is expected to generate 2.97 times more return on investment than AMAZON. However, Monster Beverage is 2.97 times more volatile than AMAZON INC 3875. It trades about 0.2 of its potential returns per unit of risk. AMAZON INC 3875 is currently generating about 0.33 per unit of risk. If you would invest 4,865 in Monster Beverage Corp on November 29, 2024 and sell it today you would earn a total of 348.00 from holding Monster Beverage Corp or generate 7.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Monster Beverage Corp vs. AMAZON INC 3875
Performance |
| Timeline |
| Monster Beverage Corp |
| AMAZON INC 3875 |
Monster Beverage and AMAZON Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Monster Beverage and AMAZON
The main advantage of trading using opposite Monster Beverage and AMAZON positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Monster Beverage 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.| Monster Beverage vs. Vita Coco | Monster Beverage vs. PepsiCo | Monster Beverage vs. The Coca Cola | Monster Beverage vs. Coca Cola Femsa SAB |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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