Correlation Between Amazon and AFFINITY MEDIA

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

Diversification Opportunities for Amazon and AFFINITY MEDIA

0.0
  Correlation Coefficient

Pay attention - limited upside

The 3 months correlation between Amazon and AFFINITY is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Amazon Inc and AFFINITY MEDIA INTERNATIONAL in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AFFINITY MEDIA INTER 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 AFFINITY MEDIA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AFFINITY MEDIA INTER has no effect on the direction of Amazon i.e., Amazon and AFFINITY MEDIA go up and down completely randomly.

Pair Corralation between Amazon and AFFINITY MEDIA

If you would invest (100.00)  in AFFINITY MEDIA INTERNATIONAL on February 27, 2022 and sell it today you would earn a total of  100.00  from holding AFFINITY MEDIA INTERNATIONAL or generate -100.0% return on investment over 90 days.
Time Period3 Months [change]
DirectionFlat 
StrengthInsignificant
Accuracy0.0%
ValuesDaily Returns

Amazon Inc  vs.  AFFINITY MEDIA INTERNATIONAL

 Performance (%) 
      Timeline 
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 fragile performance in the last few months, the Stock's basic indicators remain quite persistent which may send shares a bit higher in June 2022. The latest mess may also be a sign of long-standing up-swing for the company institutional investors.

Amazon Price Channel

AFFINITY MEDIA INTER 
AFFINITY Performance
0 of 100
Over the last 90 days AFFINITY MEDIA INTERNATIONAL has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable primary indicators, AFFINITY MEDIA is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Amazon and AFFINITY MEDIA Volatility Contrast

 Predicted Return Density 
      Returns 

Pair Trading with Amazon and AFFINITY MEDIA

The main advantage of trading using opposite Amazon and AFFINITY MEDIA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amazon position performs unexpectedly, AFFINITY MEDIA 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 AFFINITY MEDIA will offset losses from the drop in AFFINITY MEDIA's long position.
The idea behind Amazon Inc and AFFINITY MEDIA INTERNATIONAL 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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.

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