Correlation Analysis Between Wayfair and Amazon Com

Analyzing existing cross correlation between Wayfair and Amazon Com. You can compare the effects of market volatilities on Wayfair and Amazon Com 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 Wayfair with a short position of Amazon Com. See also your portfolio center. Please also check ongoing floating volatility patterns of Wayfair and Amazon Com.
Horizon     30 Days    Login   to change
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Comparative Performance

Wayfair  
00

Risk-Adjusted Performance

Over the last 30 days Wayfair has generated negative risk-adjusted returns adding no value to investors with long positions. Inspite fairly stable primary indicators, Wayfair is not utilizing all of its potentials. The existing stock price fuss, may contribute to near short-term losses for the directors.
Amazon Com  
55

Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in Amazon Com are ranked lower than 5 (%) of all global equities and portfolios over the last 30 days. Allthough quite persistent forward indicators, Amazon Com is not utilizing all of its potentials. The current stock price mess, may contribute to short term losses for the partners.

Wayfair and Amazon Com Volatility Contrast

 Predicted Return Density 
    
  Returns 

Wayfair Inc  vs.  Amazon Com Inc

 Performance (%) 
    
  Timeline 

Pair Volatility

Taking into account the 30 trading days horizon, Wayfair is expected to under-perform the Amazon Com. In addition to that, Wayfair is 3.57 times more volatile than Amazon Com. It trades about 0.0 of its total potential returns per unit of risk. Amazon Com is currently generating about 0.07 per unit of volatility. If you would invest  178,566  in Amazon Com on December 20, 2019 and sell it today you would earn a total of  7,906  from holding Amazon Com or generate 4.43% return on investment over 30 days.

Pair Corralation between Wayfair and Amazon Com

0.23
Time Period3 Months [change]
DirectionPositive 
StrengthVery Weak
Accuracy98.41%
ValuesDaily Returns

Diversification Opportunities for Wayfair and Amazon Com

Wayfair Inc diversification synergy

Modest diversification

Overlapping area represents the amount of risk that can be diversified away by holding Wayfair Inc and Amazon Com Inc in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Amazon Com and Wayfair 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 Wayfair are associated (or correlated) with Amazon Com. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amazon Com has no effect on the direction of Wayfair i.e. Wayfair and Amazon Com go up and down completely randomly.
See also your portfolio center. Please also try Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.