Correlation Between Shawcor and Amazon
Can any of the company-specific risk be diversified away by investing in both Shawcor 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 Shawcor and Amazon into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Shawcor and Amazon Inc, you can compare the effects of market volatilities on Shawcor 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 Shawcor with a short position of Amazon. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shawcor and Amazon.
Diversification Opportunities for Shawcor and Amazon
Very weak diversification
The 3 months correlation between Shawcor and Amazon is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding Shawcor and Amazon Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amazon Inc and Shawcor 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 Shawcor 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 Shawcor i.e., Shawcor and Amazon go up and down completely randomly.
Pair Corralation between Shawcor and Amazon
Assuming the 90 days horizon Shawcor is expected to generate 0.33 times more return on investment than Amazon. However, Shawcor is 3.0 times less risky than Amazon. It trades about 0.5 of its potential returns per unit of risk. Amazon Inc is currently generating about 0.03 per unit of risk. If you would invest 1,316 in Shawcor on January 20, 2024 and sell it today you would earn a total of 9.00 from holding Shawcor or generate 0.68% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 18.18% |
| Values | Daily Returns |
Shawcor vs. Amazon Inc
Performance |
| Timeline |
| Shawcor |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
OK
| Amazon Inc |
Shawcor and Amazon Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shawcor and Amazon
The main advantage of trading using opposite Shawcor and Amazon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shawcor 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.| Shawcor vs. Compania de Minas | Shawcor vs. McEwen Mining | Shawcor vs. Endeavour Silver Corp | Shawcor vs. Hecla Mining |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
Other Complementary Tools
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges |