Correlation Between Amazon and Siward Crystal

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

By analyzing existing cross correlation between Amazon Inc and Siward Crystal Technology, you can compare the effects of market volatilities on Amazon and Siward Crystal 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 Siward Crystal. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amazon and Siward Crystal.

Diversification Opportunities for Amazon and Siward Crystal

-0.74

Correlation Coefficient

Amazon  Siward Crystal

Pay attention - limited upside

The 3 months correlation between Amazon and Siward is -0.74. Overlapping area represents the amount of risk that can be diversified away by holding Amazon Inc and Siward Crystal Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Siward Crystal Technology 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 Siward Crystal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Siward Crystal Technology has no effect on the direction of Amazon i.e., Amazon and Siward Crystal go up and down completely randomly.

Pair Corralation between Amazon and Siward Crystal

Given the investment horizon of 90 days Amazon Inc is expected to generate 1.79 times more return on investment than Siward Crystal. However, Amazon is 1.79 times more volatile than Siward Crystal Technology. It trades about 0.2 of its potential returns per unit of risk. Siward Crystal Technology is currently generating about -0.14 per unit of risk. If you would invest  18,700  in Amazon Inc on September 12, 2024 and sell it today you would earn a total of  4,318  from holding Amazon Inc or generate 23.09% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	98.44%
Values	Daily Returns

Amazon Inc  vs.  Siward Crystal Technology

Amazon Inc

Risk-Adjusted Performance

15 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Amazon Inc are ranked lower than 15 (%) of all global equities and portfolios over the last 90 days. In spite of very unsteady basic indicators, Amazon displayed solid returns over the last few months and may actually be approaching a breakup point.

Siward Crystal Technology

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Siward Crystal Technology has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest abnormal performance, the Stock's basic indicators remain stable and the latest fuss on Wall Street may also be a sign of long-term gains for the venture sophisticated investors.

Pair Trading with Amazon and Siward Crystal

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

The idea behind Amazon Inc and Siward Crystal Technology 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 CEOs Directory module to screen CEOs from public companies around the world.