Correlation Between Amazon and Exasol AG

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

By analyzing existing cross correlation between Amazon Inc and Exasol AG, you can compare the effects of market volatilities on Amazon and Exasol AG 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 Exasol AG. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amazon and Exasol AG.

Diversification Opportunities for Amazon and Exasol AG

-0.62

Correlation Coefficient

Amazon  Exasol AG

Excellent diversification

The 3 months correlation between Amazon and Exasol is -0.62. Overlapping area represents the amount of risk that can be diversified away by holding Amazon Inc and Exasol AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Exasol AG 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 Exasol AG. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Exasol AG has no effect on the direction of Amazon i.e., Amazon and Exasol AG go up and down completely randomly.

Pair Corralation between Amazon and Exasol AG

Assuming the 90 days horizon Amazon Inc is expected to generate 0.92 times more return on investment than Exasol AG. However, Amazon Inc is 1.09 times less risky than Exasol AG. It trades about 0.13 of its potential returns per unit of risk. Exasol AG is currently generating about -0.15 per unit of risk. If you would invest  16,670  in Amazon Inc on April 25, 2025 and sell it today you would earn a total of  2,692  from holding Amazon Inc or generate 16.15% return on investment over 90 days.

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

Amazon Inc  vs.  Exasol AG

Amazon Inc

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Amazon Inc are ranked lower than 10 (%) 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.

Exasol AG

Risk-Adjusted Performance

Very Weak

Over the last 90 days Exasol AG has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fragile performance in the last few months, the Stock's essential indicators remain comparatively stable which may send shares a bit higher in August 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Pair Trading with Amazon and Exasol AG

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

The idea behind Amazon Inc and Exasol AG 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.

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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.