Correlation Between Amazon and THARISA NON

Can any of the company-specific risk be diversified away by investing in both Amazon and THARISA NON 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 Amazon and THARISA NON into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Amazon Inc and THARISA NON LIST, you can compare the effects of market volatilities on Amazon and THARISA NON 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 Amazon with a short position of THARISA NON. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amazon and THARISA NON.

Diversification Opportunities for Amazon and THARISA NON

0.75

Correlation Coefficient

Amazon  THARISA NON

Poor diversification

The 3 months correlation between Amazon and THARISA is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding Amazon Inc and THARISA NON LIST in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on THARISA NON LIST and Amazon 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 Amazon Inc are associated (or correlated) with THARISA NON. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of THARISA NON LIST has no effect on the direction of Amazon i.e., Amazon and THARISA NON go up and down completely randomly.

Pair Corralation between Amazon and THARISA NON

Assuming the 90 days horizon Amazon is expected to generate 4.9 times less return on investment than THARISA NON. But when comparing it to its historical volatility, Amazon Inc is 3.76 times less risky than THARISA NON. It trades about 0.15 of its potential returns per unit of risk. THARISA NON LIST is currently generating about 0.19 of returns per unit of risk over similar time horizon. If you would invest  60.00  in THARISA NON LIST on April 24, 2025 and sell it today you would earn a total of  64.00  from holding THARISA NON LIST or generate 106.67% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	100.0%
Values	Daily Returns

Amazon Inc  vs.  THARISA NON LIST

Amazon Inc

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Amazon Inc are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, Amazon reported solid returns over the last few months and may actually be approaching a breakup point.

THARISA NON LIST

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in THARISA NON LIST are ranked lower than 15 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, THARISA NON reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Amazon and THARISA NON

The main advantage of trading using opposite Amazon and THARISA NON positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amazon position performs unexpectedly, THARISA NON 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 THARISA NON will offset losses from the drop in THARISA NON's long position.

The idea behind Amazon Inc and THARISA NON LIST 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.

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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.