Correlation Between Avino Silver and Amazon

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Avino Silver 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 Avino Silver and Amazon into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Avino Silver Gold and Amazon Inc, you can compare the effects of market volatilities on Avino Silver 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 Avino Silver with a short position of Amazon. Check out your portfolio center. Please also check ongoing floating volatility patterns of Avino Silver and Amazon.

Diversification Opportunities for Avino Silver and Amazon

-0.77
  Correlation Coefficient

Pay attention - limited upside

The 3 months correlation between Avino and Amazon is -0.77. Overlapping area represents the amount of risk that can be diversified away by holding Avino Silver Gold and Amazon Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amazon Inc and Avino Silver 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 Avino Silver Gold 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 Avino Silver i.e., Avino Silver and Amazon go up and down completely randomly.

Pair Corralation between Avino Silver and Amazon

Considering the 90-day investment horizon Avino Silver Gold is expected to under-perform the Amazon. But the stock apears to be less risky and, when comparing its historical volatility, Avino Silver Gold is 1.17 times less risky than Amazon. The stock 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  9,053  in Amazon Inc on September 6, 2022 and sell it today you would earn a total of  48.00  from holding Amazon Inc or generate 0.53% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthWeak
Accuracy100.0%
ValuesDaily Returns

Avino Silver Gold  vs.  Amazon Inc

 Performance (%) 
       Timeline  
Avino Silver Gold 
Avino Performance
10 of 100
Compared to the overall equity markets, risk-adjusted returns on investments in Avino Silver Gold are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. Even with relatively weak basic indicators, Avino Silver revealed solid returns over the last few months and may actually be approaching a breakup point.

Avino Price Channel

Amazon Inc 
Amazon Performance
0 of 100
Over the last 90 days Amazon Inc has generated negative risk-adjusted returns adding no value to investors with long positions. Despite unsteady performance in the last few months, the Stock's basic indicators remain quite persistent which may send shares a bit higher in January 2023. The latest mess may also be a sign of long-standing up-swing for the company institutional investors.

Amazon Price Channel

Avino Silver and Amazon Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Avino Silver and Amazon

The main advantage of trading using opposite Avino Silver and Amazon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Avino Silver 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.
Avino Silver vs. Chevron Corp
Avino Silver vs. Merck Company
Avino Silver vs. Pfizer Inc
Avino Silver vs. Microsoft
The idea behind Avino Silver Gold 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.
Amazon vs. JD Inc Adr
Amazon vs. Bed Bath Beyond
Amazon vs. Best Buy Co
Amazon vs. Cisco Systems
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 Focused Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.

Other Complementary Tools

Portfolio Anywhere
Track or share privately all of your investments from the convenience of any device
Go
Idea Analyzer
Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas
Go
Money Managers
Screen money managers from public funds and ETFs managed around the world
Go
Portfolio Rebalancing
Analyze risk-adjusted returns against different time horizons to find asset-allocation targets
Go
Portfolio Volatility
Check portfolio volatility and analyze historical return density to properly model market risk
Go
ETF Directory
Find actively traded Exchange Traded Funds (ETF) from around the world
Go