Correlation Between Xtrackers and Amazon
Can any of the company-specific risk be diversified away by investing in both Xtrackers 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 Xtrackers and Amazon into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Xtrackers II and Amazon Inc, you can compare the effects of market volatilities on Xtrackers 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 Xtrackers with a short position of Amazon. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xtrackers and Amazon.
Diversification Opportunities for Xtrackers and Amazon
Pay attention - limited upside
The 3 months correlation between Xtrackers and Amazon is -0.77. Overlapping area represents the amount of risk that can be diversified away by holding Xtrackers II and Amazon Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amazon Inc and Xtrackers 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 Xtrackers II 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 Xtrackers i.e., Xtrackers and Amazon go up and down completely randomly.
Pair Corralation between Xtrackers and Amazon
Assuming the 90 days trading horizon Xtrackers II is expected to under-perform the Amazon. But the etf apears to be less risky and, when comparing its historical volatility, Xtrackers II is 5.78 times less risky than Amazon. The etf trades about -0.03 of its potential returns per unit of risk. The Amazon Inc is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 16,462 in Amazon Inc on January 26, 2024 and sell it today you would earn a total of 58.00 from holding Amazon Inc or generate 0.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xtrackers II vs. Amazon Inc
Performance |
| Timeline |
| Xtrackers II |
| Amazon Inc |
Xtrackers and Amazon Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xtrackers and Amazon
The main advantage of trading using opposite Xtrackers and Amazon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xtrackers 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.| Xtrackers vs. Xtrackers FTSE | Xtrackers vs. Xtrackers SP 500 | Xtrackers vs. Xtrackers MSCI | Xtrackers vs. Xtrackers Stoxx |
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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
Other Complementary Tools
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets |