Correlation Between Bell Copper and Amazon

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

Diversification Opportunities for Bell Copper and Amazon

0.67
  Correlation Coefficient

Poor diversification

The 3 months correlation between BCUFF and Amazon is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding Bell Copper and Amazon Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amazon Inc and Bell Copper 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 Bell Copper 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 Bell Copper i.e., Bell Copper and Amazon go up and down completely randomly.

Pair Corralation between Bell Copper and Amazon

Assuming the 90 days horizon Bell Copper is expected to generate 1.99 times more return on investment than Amazon. However, Bell Copper is 1.99 times more volatile than Amazon Inc. It trades about 0.23 of its potential returns per unit of risk. Amazon Inc is currently generating about 0.06 per unit of risk. If you would invest  9.09  in Bell Copper on September 5, 2022 and sell it today you would earn a total of  2.91  from holding Bell Copper or generate 32.01% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthSignificant
Accuracy95.45%
ValuesDaily Returns

Bell Copper  vs.  Amazon Inc

 Performance (%) 
       Timeline  
Bell Copper 
BCUFF Performance
1 of 100
Compared to the overall equity markets, risk-adjusted returns on investments in Bell Copper are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of rather weak technical and fundamental indicators, Bell Copper may actually be approaching a critical reversion point that can send shares even higher in January 2023.

BCUFF 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 weak 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

Bell Copper and Amazon Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Bell Copper and Amazon

The main advantage of trading using opposite Bell Copper and Amazon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bell Copper 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.
Bell Copper vs. AdvanSix
Bell Copper vs. Braskem SA Class
Bell Copper vs. Celanese
The idea behind Bell Copper 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. Carvana Co
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 Bond Directory module to find actively traded corporate debentures issued by US companies.

Other Complementary Tools

Money Flow Index
Determine momentum by analyzing Money Flow Index and other technical indicators
Go
Equity Valuation
Check real value of public entities based on technical and fundamental data
Go
Portfolio Rebalancing
Analyze risk-adjusted returns against different time horizons to find asset-allocation targets
Go
ETF Directory
Find actively traded Exchange Traded Funds (ETF) from around the world
Go
Portfolio Diagnostics
Use generated alerts and portfolio events aggregator to diagnose current holdings
Go