Correlation Between Amazon and Maven Brands

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

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

Diversification Opportunities for Amazon and Maven Brands

0.0

Correlation Coefficient

Amazon  Maven Brands

Pay attention - limited upside

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

Pair Corralation between Amazon and Maven Brands

If you would invest  0.00  in Maven Brands on December 20, 2024 and sell it today you would earn a total of  0.00  from holding Maven Brands or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Amazon Inc  vs.  Maven Brands

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 unsteady performance in the last few months, the Stock's basic indicators remain very healthy which may send shares a bit higher in April 2025. The recent disarray may also be a sign of long period up-swing for the firm investors.

Maven Brands

Risk-Adjusted Performance

Very Weak

Over the last 90 days Maven Brands has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable technical and fundamental indicators, Maven Brands is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with Amazon and Maven Brands

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

The idea behind Amazon Inc and Maven Brands 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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.