Correlation Between Amazon and WILLIS LEASE

Can any of the company-specific risk be diversified away by investing in both Amazon and WILLIS LEASE 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 Amazon and WILLIS LEASE into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Amazon Inc and WILLIS LEASE FIN, you can compare the effects of market volatilities on Amazon and WILLIS LEASE 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 Amazon with a short position of WILLIS LEASE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amazon and WILLIS LEASE.

Diversification Opportunities for Amazon and WILLIS LEASE

0.0

Correlation Coefficient

Amazon  WILLIS LEASE

Pay attention - limited upside

The 3 months correlation between Amazon and WILLIS is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Amazon Inc and WILLIS LEASE FIN in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WILLIS LEASE FIN and Amazon 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 Amazon Inc are associated (or correlated) with WILLIS LEASE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of WILLIS LEASE FIN has no effect on the direction of Amazon i.e., Amazon and WILLIS LEASE go up and down completely randomly.

Pair Corralation between Amazon and WILLIS LEASE

If you would invest (100.00) in Amazon Inc on December 31, 2024 and sell it today you would earn a total of  100.00  from holding Amazon Inc or generate -100.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Amazon Inc  vs.  WILLIS LEASE FIN

Amazon Inc

Risk-Adjusted Performance

Very Weak

Over the last 90 days Amazon Inc has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, Amazon is not utilizing all of its potentials. The current stock price uproar, may contribute to short-horizon losses for the private investors.

WILLIS LEASE FIN

Risk-Adjusted Performance

Very Weak

Over the last 90 days WILLIS LEASE FIN has generated negative risk-adjusted returns adding no value to investors with long positions. Despite uncertain performance in the last few months, the Stock's basic indicators remain nearly stable which may send shares a bit higher in May 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

Pair Trading with Amazon and WILLIS LEASE

The main advantage of trading using opposite Amazon and WILLIS LEASE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amazon position performs unexpectedly, WILLIS LEASE 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 WILLIS LEASE will offset losses from the drop in WILLIS LEASE's long position.

The idea behind Amazon Inc and WILLIS LEASE FIN pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.