Correlation Between AUSTEVOLL SEAFOOD and Amazon
Can any of the company-specific risk be diversified away by investing in both AUSTEVOLL SEAFOOD 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 AUSTEVOLL SEAFOOD and Amazon into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AUSTEVOLL SEAFOOD and Amazon Inc, you can compare the effects of market volatilities on AUSTEVOLL SEAFOOD 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 AUSTEVOLL SEAFOOD with a short position of Amazon. Check out your portfolio center. Please also check ongoing floating volatility patterns of AUSTEVOLL SEAFOOD and Amazon.
Diversification Opportunities for AUSTEVOLL SEAFOOD and Amazon
0.31 | Correlation Coefficient |
Weak diversification
The 3 months correlation between AUSTEVOLL and Amazon is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding AUSTEVOLL SEAFOOD and Amazon Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amazon Inc and AUSTEVOLL SEAFOOD 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 AUSTEVOLL SEAFOOD 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 AUSTEVOLL SEAFOOD i.e., AUSTEVOLL SEAFOOD and Amazon go up and down completely randomly.
Pair Corralation between AUSTEVOLL SEAFOOD and Amazon
Assuming the 90 days trading horizon AUSTEVOLL SEAFOOD is expected to under-perform the Amazon. But the stock apears to be less risky and, when comparing its historical volatility, AUSTEVOLL SEAFOOD is 1.13 times less risky than Amazon. The stock trades about -0.18 of its potential returns per unit of risk. The Amazon Inc is currently generating about 0.45 of returns per unit of risk over similar time horizon. If you would invest 19,106 in Amazon Inc on September 25, 2024 and sell it today you would earn a total of 2,639 from holding Amazon Inc or generate 13.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
AUSTEVOLL SEAFOOD vs. Amazon Inc
Performance |
| Timeline |
| AUSTEVOLL SEAFOOD |
| Amazon Inc |
AUSTEVOLL SEAFOOD and Amazon Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AUSTEVOLL SEAFOOD and Amazon
The main advantage of trading using opposite AUSTEVOLL SEAFOOD and Amazon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AUSTEVOLL SEAFOOD 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.| AUSTEVOLL SEAFOOD vs. Apple Inc | AUSTEVOLL SEAFOOD vs. Apple Inc | AUSTEVOLL SEAFOOD vs. Microsoft | AUSTEVOLL SEAFOOD vs. Microsoft |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
Other Complementary Tools
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA |