Correlation Between AGRICULTBK HADR/25 and Amazon

Can any of the company-specific risk be diversified away by investing in both AGRICULTBK HADR/25 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 AGRICULTBK HADR/25 and Amazon into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between AGRICULTBK HADR25 YC and Amazon Inc, you can compare the effects of market volatilities on AGRICULTBK HADR/25 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 AGRICULTBK HADR/25 with a short position of Amazon. Check out your portfolio center. Please also check ongoing floating volatility patterns of AGRICULTBK HADR/25 and Amazon.

Diversification Opportunities for AGRICULTBK HADR/25 and Amazon

0.0

Correlation Coefficient

AGRICULTBK HADR/25  Amazon

Pay attention - limited upside

The 3 months correlation between AGRICULTBK and Amazon is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding AGRICULTBK HADR25 YC and Amazon Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amazon Inc and AGRICULTBK HADR/25 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 AGRICULTBK HADR25 YC 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 AGRICULTBK HADR/25 i.e., AGRICULTBK HADR/25 and Amazon go up and down completely randomly.

Pair Corralation between AGRICULTBK HADR/25 and Amazon

If you would invest  1,120  in AGRICULTBK HADR25 YC on September 5, 2024 and sell it today you would earn a total of  70.00  from holding AGRICULTBK HADR25 YC or generate 6.25% return on investment over 90 days.

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

AGRICULTBK HADR25 YC  vs.  Amazon Inc

AGRICULTBK HADR/25

Risk-Adjusted Performance

13 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in AGRICULTBK HADR25 YC are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. Despite nearly weak basic indicators, AGRICULTBK HADR/25 reported solid returns over the last few months and may actually be approaching a breakup point.

Amazon Inc

Risk-Adjusted Performance

0 of 100

Solid

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

Pair Trading with AGRICULTBK HADR/25 and Amazon

The main advantage of trading using opposite AGRICULTBK HADR/25 and Amazon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AGRICULTBK HADR/25 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.

The idea behind AGRICULTBK HADR25 YC and Amazon Inc 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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.