Correlation Between Amazon and Envela Corp

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

Diversification Opportunities for Amazon and Envela Corp

0.66
  Correlation Coefficient

Poor diversification

The 3 months correlation between Amazon and Envela is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding Amazon Inc and Envela Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Envela Corp 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 Envela Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Envela Corp has no effect on the direction of Amazon i.e., Amazon and Envela Corp go up and down completely randomly.

Pair Corralation between Amazon and Envela Corp

Given the investment horizon of 90 days Amazon Inc is expected to under-perform the Envela Corp. In addition to that, Amazon is 1.27 times more volatile than Envela Corp. It trades about -0.02 of its total potential returns per unit of risk. Envela Corp is currently generating about 0.21 per unit of volatility. If you would invest  467.00  in Envela Corp on September 8, 2022 and sell it today you would earn a total of  57.00  from holding Envela Corp or generate 12.21% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthSignificant
Accuracy100.0%
ValuesDaily Returns

Amazon Inc  vs.  Envela Corp

 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 unfluctuating 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

Envela Corp 
Envela Performance
0 of 100
Over the last 90 days Envela Corp 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 essential indicators remain somewhat strong which may send shares a bit higher in January 2023. The current disturbance may also be a sign of long term up-swing for the company investors.

Envela Price Channel

Amazon and Envela Corp Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Amazon and Envela Corp

The main advantage of trading using opposite Amazon and Envela Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amazon position performs unexpectedly, Envela Corp 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 Envela Corp will offset losses from the drop in Envela Corp's long position.
Amazon vs. HP Inc
Amazon vs. The Travelers Companies
Amazon vs. Intel
Amazon vs. Caterpillar
The idea behind Amazon Inc and Envela Corp 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.
Envela Corp vs. Texas Instruments Incorporated
Envela Corp vs. VanEck Vectors ETF
Envela Corp vs. Advantest
Envela Corp vs. ASE Industrial Holding
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.

Other Complementary Tools

Correlation Analysis
Reduce portfolio risk simply by holding instruments which are not perfectly correlated
Go
Companies Directory
Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals
Go
Sync Your Broker
Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors.
Go
Money Flow Index
Determine momentum by analyzing Money Flow Index and other technical indicators
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