Correlation Between Astra Space and Amazon

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

Diversification Opportunities for Astra Space and Amazon

0.74
  Correlation Coefficient

Poor diversification

The 3 months correlation between Astra and Amazon is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Astra Space and Amazon Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amazon Inc and Astra Space 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 Astra Space are associated (or correlated) with Amazon. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amazon Inc has no effect on the direction of Astra Space i.e., Astra Space and Amazon go up and down completely randomly.

Pair Corralation between Astra Space and Amazon

Given the investment horizon of 90 days Astra Space is expected to generate 1.66 times more return on investment than Amazon. However, Astra Space is 1.66 times more volatile than Amazon Inc. It trades about -0.03 of its potential returns per unit of risk. Amazon Inc is currently generating about -0.15 per unit of risk. If you would invest  62.00  in Astra Space on September 6, 2022 and sell it today you would lose (8.00)  from holding Astra Space or give up 12.9% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthSignificant
Accuracy100.0%
ValuesDaily Returns

Astra Space  vs.  Amazon Inc

 Performance (%) 
       Timeline  
Astra Space 
Astra Performance
0 of 100
Over the last 90 days Astra Space has generated negative risk-adjusted returns adding no value to investors with long positions. Even with weak performance in the last few months, the Stock's basic indicators remain relatively invariable which may send shares a bit higher in January 2023. The latest agitation may also be a sign of long-running up-swing for the enterprise retail investors.

Astra Price Channel

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

Astra Space and Amazon Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Astra Space and Amazon

The main advantage of trading using opposite Astra Space and Amazon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Astra Space position performs unexpectedly, Amazon 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 Amazon will offset losses from the drop in Amazon's long position.
Astra Space vs. AAR Corp
Astra Space vs. Aerojet Rocketdyne Holdings
Astra Space vs. Astronics
Astra Space vs. AeroVironment
The idea behind Astra Space and Amazon Inc 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.
Amazon vs. Carvana Co
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.

Other Complementary Tools

Portfolio Diagnostics
Use generated alerts and portfolio events aggregator to diagnose current holdings
Go
Pattern Recognition
Use different Pattern Recognition models to time the market across multiple global exchanges
Go
Pattern Recognition
Use different Pattern Recognition models to time the market across multiple global exchanges
Go
Volatility Analysis
Get historical volatility and risk analysis based on latest market data
Go
Idea Analyzer
Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas
Go
Idea Breakdown
Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes
Go
Bollinger Bands
Use Bollinger Bands indicator to analyze target price for a given investing horizon
Go
Commodity Channel Index
Use Commodity Channel Index to analyze current equity momentum
Go
Fund Screener
Find actively-traded funds from around the world traded on over 30 global exchanges
Go
Companies Directory
Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals
Go