Correlation Between Amazon and Bar Harbor

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

Diversification Opportunities for Amazon and Bar Harbor

-0.72
  Correlation Coefficient

Pay attention - limited upside

The 3 months correlation between Amazon and Bar Harbor is -0.72. Overlapping area represents the amount of risk that can be diversified away by holding Amazon Inc and Bar Harbor Bankshares in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bar Harbor Bankshares 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 Bar Harbor. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bar Harbor Bankshares has no effect on the direction of Amazon i.e., Amazon and Bar Harbor go up and down completely randomly.

Pair Corralation between Amazon and Bar Harbor

Given the investment horizon of 90 days Amazon Inc is expected to under-perform the Bar Harbor. In addition to that, Amazon is 1.44 times more volatile than Bar Harbor Bankshares. It trades about -0.11 of its total potential returns per unit of risk. Bar Harbor Bankshares is currently generating about 0.14 per unit of volatility. If you would invest  2,688  in Bar Harbor Bankshares on September 2, 2022 and sell it today you would earn a total of  377.00  from holding Bar Harbor Bankshares or generate 14.03% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthWeak
Accuracy100.0%
ValuesDaily Returns

Amazon Inc  vs.  Bar Harbor Bankshares

 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 inconsistent 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

Bar Harbor Bankshares 
Bar Harbor Performance
6 of 100
Compared to the overall equity markets, risk-adjusted returns on investments in Bar Harbor Bankshares are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. Despite somewhat unsteady technical indicators, Bar Harbor sustained solid returns over the last few months and may actually be approaching a breakup point.

Bar Harbor Price Channel

Amazon and Bar Harbor Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Amazon and Bar Harbor

The main advantage of trading using opposite Amazon and Bar Harbor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amazon position performs unexpectedly, Bar Harbor 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 Bar Harbor will offset losses from the drop in Bar Harbor's long position.
Amazon vs. Merck Company
Amazon vs. Walmart
Amazon vs. Chevron Corp
Amazon vs. Verizon Communications
The idea behind Amazon Inc and Bar Harbor Bankshares 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.
Bar Harbor vs. Procter Gamble
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..

Other Complementary Tools

Global Correlations
Find global opportunities by holding instruments from different markets
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
Volatility Analysis
Get historical volatility and risk analysis based on latest market data
Go
Price Exposure Probability
Analyze equity upside and downside potential for a given time horizon across multiple markets
Go
Idea Breakdown
Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes
Go
Price Exposure Probability
Analyze equity upside and downside potential for a given time horizon across multiple markets
Go
ETF Directory
Find actively traded Exchange Traded Funds (ETF) from around the world
Go
Financial Widgets
Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets
Go
Balance Of Power
Check stock momentum by analyzing Balance Of Power indicator and other technical ratios
Go