Correlation Between Amazon and Bankinvest Europa
Specify exactly 2 symbols:
By analyzing existing cross correlation between Amazon Inc and Bankinvest Europa, you can compare the effects of market volatilities on Amazon and Bankinvest Europa 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 Bankinvest Europa. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amazon and Bankinvest Europa.
Diversification Opportunities for Amazon and Bankinvest Europa
0.41 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Amazon and Bankinvest is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding Amazon Inc and Bankinvest - Europa in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bankinvest - Europa 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 Bankinvest Europa. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bankinvest - Europa has no effect on the direction of Amazon i.e., Amazon and Bankinvest Europa go up and down completely randomly.
Pair Corralation between Amazon and Bankinvest Europa
Given the investment horizon of 90 days Amazon Inc is expected to generate 1.91 times more return on investment than Bankinvest Europa. However, Amazon is 1.91 times more volatile than Bankinvest Europa. It trades about 0.14 of its potential returns per unit of risk. Bankinvest Europa is currently generating about 0.2 per unit of risk. If you would invest 17,354 in Amazon Inc on December 29, 2023 and sell it today you would earn a total of 684.00 from holding Amazon Inc or generate 3.94% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Amazon Inc vs. Bankinvest - Europa
Performance |
Timeline |
Amazon Inc |
Bankinvest - Europa |
Amazon and Bankinvest Europa Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Amazon and Bankinvest Europa
The main advantage of trading using opposite Amazon and Bankinvest Europa positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amazon position performs unexpectedly, Bankinvest Europa 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 Bankinvest Europa will offset losses from the drop in Bankinvest Europa's long position.The idea behind Amazon Inc and Bankinvest Europa 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.Check out your portfolio center.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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
Other Complementary Tools
Fundamental Analysis View fundamental data based on most recent published financial statements | |
CEOs Directory Screen CEOs from public companies around the world | |
Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities |