Correlation Between Carnival and Amazon

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

Diversification Opportunities for Carnival and Amazon

  Correlation Coefficient

Good diversification

The 3 months correlation between Carnival and Amazon is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding Carnival and Amazon Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amazon Inc and Carnival 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 Carnival 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 Carnival i.e., Carnival and Amazon go up and down completely randomly.

Pair Corralation between Carnival and Amazon

Considering the 90-day investment horizon Carnival is expected to generate 1.55 times more return on investment than Amazon. However, Carnival is 1.55 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 -0.07 per unit of risk. If you would invest  1,834  in Carnival on September 8, 2022 and sell it today you would lose (904.00)  from holding Carnival or give up 49.29% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
ValuesDaily Returns

Carnival  vs.  Amazon Inc

 Performance (%) 
Carnival Performance
0 of 100
Over the last 90 days Carnival has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively steady fundamental indicators, Carnival is not utilizing all of its potentials. The new stock price chaos, may contribute to medium-term losses for the stakeholders.

Carnival 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 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

Carnival and Amazon Volatility Contrast

   Predicted Return Density   

Pair Trading with Carnival and Amazon

The main advantage of trading using opposite Carnival and Amazon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Carnival 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.
Carnival vs. JPMorgan Chase Co
Carnival vs. Intel
Carnival vs. Dupont De Nemours
Carnival vs. The Boeing
The idea behind Carnival 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. HP Inc
Amazon vs. The Travelers Companies
Amazon vs. Intel
Amazon vs. Caterpillar
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 Focused Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.

Other Complementary Tools

CEO Directory
Screen CEOs from public companies around the world
Money Managers
Screen money managers from public funds and ETFs managed around the world
Theme Ratings
Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance
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
Equity Analysis
Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities
Earnings Calls
Check upcoming earnings announcements updated hourly across public exchanges
Portfolio Diagnostics
Use generated alerts and portfolio events aggregator to diagnose current holdings
Price Transformation
Use Price Transformation models to analyze depth of different equity instruments across global markets
Stock Tickers
Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites