Correlation Between Kamada and Amazon

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

Diversification Opportunities for Kamada and Amazon

0.52
  Correlation Coefficient

Very weak diversification

The 3 months correlation between Kamada and Amazon is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding Kamada and Amazon Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amazon Inc and Kamada 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 Kamada 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 Kamada i.e., Kamada and Amazon go up and down completely randomly.

Pair Corralation between Kamada and Amazon

Given the investment horizon of 90 days Kamada is expected to generate 0.88 times more return on investment than Amazon. However, Kamada is 1.14 times less risky than Amazon. It trades about -0.02 of its potential returns per unit of risk. Amazon Inc is currently generating about -0.04 per unit of risk. If you would invest  647.00  in Kamada on September 8, 2022 and sell it today you would lose (196.00)  from holding Kamada or give up 30.29% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthWeak
Accuracy100.0%
ValuesDaily Returns

Kamada  vs.  Amazon Inc

 Performance (%) 
       Timeline  
Kamada 
Kamada Performance
0 of 100
Over the last 90 days Kamada has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest inconsistent performance, the Stock's fundamental indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the company investors.

Kamada 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 unfluctuating 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

Kamada and Amazon Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Kamada and Amazon

The main advantage of trading using opposite Kamada and Amazon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kamada 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.
Kamada vs. Johnson Johnson
Kamada vs. Bondbloxx ETF Trust
Kamada vs. Fidelity MSCI Energy
Kamada vs. Merck Company
The idea behind Kamada 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. HP Inc
Amazon vs. The Travelers Companies
Amazon vs. Intel
Amazon vs. Caterpillar
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 Watchlist Optimization module to optimize watchlists to build efficient portfolio or rebalance existing positions based on mean-variance optimization algorithm.

Other Complementary Tools

Portfolio Manager
State of the art Portfolio Manager to monitor and improve performance of your invested capital
Go
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
Go
Portfolio Backtesting
Avoid under-diversification and over-optimization by backtesting your portfolios
Go
Portfolio Comparator
Compare the composition, asset allocations and performance of any two portfolios in your account
Go
Portfolio File Import
Quickly import all of your third-party portfolios from your local drive in csv format
Go
Performance Analysis
Check effects of mean-variance optimization against your current asset allocation
Go
Equity Forecasting
Use basic forecasting models to generate price predictions and determine price momentum
Go
Fundamentals Comparison
Compare fundamentals across multiple equities to find investing opportunities
Go
Cryptocurrency Center
Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency
Go