Correlation Between Ke HoldingsInc and Amazon

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

Diversification Opportunities for Ke HoldingsInc and Amazon

0.52
  Correlation Coefficient

Very weak diversification

The 3 months correlation between Ke HoldingsInc and Amazon is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding Ke HoldingsInc and Amazon Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amazon Inc and Ke HoldingsInc 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 Ke HoldingsInc 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 Ke HoldingsInc i.e., Ke HoldingsInc and Amazon go up and down completely randomly.

Pair Corralation between Ke HoldingsInc and Amazon

Given the investment horizon of 90 days Ke HoldingsInc is expected to generate 1.89 times more return on investment than Amazon. However, Ke HoldingsInc is 1.89 times more volatile than Amazon Inc. It trades about 0.34 of its potential returns per unit of risk. Amazon Inc is currently generating about 0.06 per unit of risk. If you would invest  1,168  in Ke HoldingsInc on September 5, 2022 and sell it today you would earn a total of  593.00  from holding Ke HoldingsInc or generate 50.77% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthWeak
Accuracy95.45%
ValuesDaily Returns

Ke HoldingsInc  vs.  Amazon Inc

 Performance (%) 
       Timeline  
Ke HoldingsInc 
Ke HoldingsInc Performance
3 of 100
Compared to the overall equity markets, risk-adjusted returns on investments in Ke HoldingsInc are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of rather conflicting forward-looking signals, Ke HoldingsInc exhibited solid returns over the last few months and may actually be approaching a breakup point.

Ke HoldingsInc 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

Ke HoldingsInc and Amazon Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Ke HoldingsInc and Amazon

The main advantage of trading using opposite Ke HoldingsInc and Amazon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ke HoldingsInc 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.
Ke HoldingsInc vs. Linde PLC
Ke HoldingsInc vs. Etsy Inc
Ke HoldingsInc vs. Home Depot
Ke HoldingsInc vs. International Business Machines
The idea behind Ke HoldingsInc 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 Analyst Recommendations module to analyst recommendations and target price estimates broken down by several categories.

Other Complementary Tools

Idea Breakdown
Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes
Go
Analyst Recommendations
Analyst recommendations and target price estimates broken down by several categories
Go
ETF Directory
Find actively traded Exchange Traded Funds (ETF) from around the world
Go
Price Transformation
Use Price Transformation models to analyze depth of different equity instruments across global markets
Go
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
Bond Directory
Find actively traded corporate debentures issued by US companies
Go
Commodity Channel Index
Use Commodity Channel Index to analyze current equity momentum
Go
Pattern Recognition
Use different Pattern Recognition models to time the market across multiple global exchanges
Go