Correlation Between Amazon CDR and Mandalay Resources

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

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

Diversification Opportunities for Amazon CDR and Mandalay Resources

0.0

Correlation Coefficient

Amazon CDR  Mandalay Resources

Pay attention - limited upside

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

Pair Corralation between Amazon CDR and Mandalay Resources

If you would invest  0.00  in Mandalay Resources Corp on December 31, 2024 and sell it today you would earn a total of  0.00  from holding Mandalay Resources Corp or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	1.59%
Values	Daily Returns

Amazon CDR  vs.  Mandalay Resources Corp

Amazon CDR

Risk-Adjusted Performance

Very Weak

Over the last 90 days Amazon CDR has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest unfluctuating performance, the Stock's technical and fundamental indicators remain sound and the latest tumult on Wall Street may also be a sign of longer-term gains for the firm shareholders.

Mandalay Resources Corp

Risk-Adjusted Performance

Good

Over the last 90 days Mandalay Resources Corp has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy fundamental indicators, Mandalay Resources is not utilizing all of its potentials. The current stock price disarray, may contribute to short-term losses for the investors.

Pair Trading with Amazon CDR and Mandalay Resources

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

The idea behind Amazon CDR and Mandalay Resources Corp 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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.