Correlation Between Amazon and Allego NV

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

Diversification Opportunities for Amazon and Allego NV

0.13
  Correlation Coefficient

Average diversification

The 1 month correlation between Amazon and Allego is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding Amazon Inc and Allego NV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Allego NV 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 Allego NV. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Allego NV has no effect on the direction of Amazon i.e., Amazon and Allego NV go up and down completely randomly.

Pair Corralation between Amazon and Allego NV

Given the investment horizon of 90 days Amazon Inc is expected to generate 0.36 times more return on investment than Allego NV. However, Amazon Inc is 2.81 times less risky than Allego NV. It trades about -0.06 of its potential returns per unit of risk. Allego NV is currently generating about -0.05 per unit of risk. If you would invest  12,551  in Amazon Inc on August 31, 2022 and sell it today you would lose (3,322)  from holding Amazon Inc or give up 26.47% of portfolio value over 90 days.
Time Period1 Month [change]
DirectionMoves Together 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

Amazon Inc  vs.  Allego NV

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

Amazon Price Channel

Allego NV 
Allego Performance
0 of 100
Over the last 90 days Allego NV has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound essential indicators, Allego NV is not utilizing all of its potentials. The current stock price tumult, may contribute to shorter-term losses for the shareholders.

Allego Price Channel

Amazon and Allego NV Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Amazon and Allego NV

The main advantage of trading using opposite Amazon and Allego NV positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amazon position performs unexpectedly, Allego NV 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 Allego NV will offset losses from the drop in Allego NV's long position.
Amazon vs. Groupon Cl A
Amazon vs. Aarons Holdings
Amazon vs. American Eagle Outfitters
Amazon vs. Abercrombie Fitch
The idea behind Amazon Inc and Allego NV 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.
Allego NV vs. Fuyao Glass Ind
Allego NV vs. Aspen Technology
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.

Other Complementary Tools

Idea Optimizer
Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio
Go
Portfolio Manager
State of the art Portfolio Manager to monitor and improve performance of your invested capital
Go
Aroon Oscillator
Analyze current equity momentum using Aroon Oscillator and other momentum ratios
Go
Stock Tickers
Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites
Go
Theme Ratings
Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance
Go