Correlation Between Amazon and BankUnited

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

Diversification Opportunities for Amazon and BankUnited

0.31
  Correlation Coefficient

Weak diversification

The 3 months correlation between Amazon and BankUnited is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding Amazon Inc and BankUnited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BankUnited 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 BankUnited. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BankUnited has no effect on the direction of Amazon i.e., Amazon and BankUnited go up and down completely randomly.

Pair Corralation between Amazon and BankUnited

Given the investment horizon of 90 days Amazon Inc is expected to under-perform the BankUnited. In addition to that, Amazon is 1.11 times more volatile than BankUnited. It trades about -0.03 of its total potential returns per unit of risk. BankUnited is currently generating about 0.03 per unit of volatility. If you would invest  2,992  in BankUnited on August 29, 2022 and sell it today you would earn a total of  665.00  from holding BankUnited or generate 22.23% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthVery Weak
Accuracy99.8%
ValuesDaily Returns

Amazon Inc  vs.  BankUnited

 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

BankUnited 
BankUnited Performance
0 of 100
Over the last 90 days BankUnited has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable forward-looking signals, BankUnited is not utilizing all of its potentials. The latest stock price uproar, may contribute to short-horizon losses for the private investors.

BankUnited Price Channel

Amazon and BankUnited Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Amazon and BankUnited

The main advantage of trading using opposite Amazon and BankUnited positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amazon position performs unexpectedly, BankUnited 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 BankUnited will offset losses from the drop in BankUnited'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 BankUnited 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.
BankUnited vs. BRASIL ON NM
BankUnited vs. Blockbuster
BankUnited vs. BRADESCO PN EJ
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.

Other Complementary Tools

Analyst Recommendations
Analyst recommendations and target price estimates broken down by several categories
Go
Options Analysis
Analyze and evaluate options and option chains as a potential hedge for your portfolios
Go
Stock Tickers
Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites
Go
Analyst Recommendations
Analyst recommendations and target price estimates broken down by several categories
Go
Pair Correlation
Compare performance and examine fundamental relationship between any two equity instruments
Go
Watchlist Optimization
Optimize watchlists to build efficient portfolio or rebalance existing positions based on mean-variance optimization algorithm
Go
Equity Analysis
Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities
Go
Portfolio Volatility
Check portfolio volatility and analyze historical return density to properly model market risk
Go