Correlation Between Amazon and Manitowoc

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

Diversification Opportunities for Amazon and Manitowoc

-0.43
  Correlation Coefficient

Very good diversification

The 3 months correlation between Amazon and Manitowoc is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding Amazon Inc and Manitowoc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Manitowoc 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 Manitowoc. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Manitowoc has no effect on the direction of Amazon i.e., Amazon and Manitowoc go up and down completely randomly.

Pair Corralation between Amazon and Manitowoc

Given the investment horizon of 90 days Amazon Inc is expected to generate 0.99 times more return on investment than Manitowoc. However, Amazon Inc is 1.01 times less risky than Manitowoc. It trades about -0.01 of its potential returns per unit of risk. Manitowoc is currently generating about -0.03 per unit of risk. If you would invest  9,053  in Amazon Inc on September 8, 2022 and sell it today you would lose (207.00)  from holding Amazon Inc or give up 2.29% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthVery Weak
Accuracy100.0%
ValuesDaily Returns

Amazon Inc  vs.  Manitowoc

 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 weak 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

Manitowoc 
Manitowoc Performance
0 of 100
Over the last 90 days Manitowoc has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly stable basic indicators, Manitowoc is not utilizing all of its potentials. The newest stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

Manitowoc Price Channel

Amazon and Manitowoc Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Amazon and Manitowoc

The main advantage of trading using opposite Amazon and Manitowoc positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amazon position performs unexpectedly, Manitowoc 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 Manitowoc will offset losses from the drop in Manitowoc's long position.
Amazon vs. LightInTheBox Holding Co
Amazon vs. Alibaba Group Holding
Amazon vs. JPMorgan Chase Co
Amazon vs. Walt Disney
The idea behind Amazon Inc and Manitowoc 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.
Manitowoc vs. BWX Technologies
Manitowoc vs. Berry Global Group
Manitowoc vs. Crown Holdings
Manitowoc vs. Clean Harbors
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

Portfolio Diagnostics
Use generated alerts and portfolio events aggregator to diagnose current holdings
Go
Instant Ratings
Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance
Go
Price Exposure Probability
Analyze equity upside and downside potential for a given time horizon across multiple markets
Go
My Watchlist Analysis
Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like
Go
Technical Analysis
Check basic technical indicators and analysis based on most latest market data
Go
Volatility Analysis
Get historical volatility and risk analysis based on latest market data
Go
Transaction History
View history of all your transactions and understand their impact on performance
Go
Price Ceiling Movement
Calculate and plot Price Ceiling Movement for different equity instruments
Go
Portfolio Anywhere
Track or share privately all of your investments from the convenience of any device
Go