Correlation Between Centene Corp and Amazon

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

Diversification Opportunities for Centene Corp and Amazon

0.35
  Correlation Coefficient

Weak diversification

The 3 months correlation between Centene and Amazon is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding Centene Corp and Amazon Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amazon Inc and Centene Corp 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 Centene Corp 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 Centene Corp i.e., Centene Corp and Amazon go up and down completely randomly.

Pair Corralation between Centene Corp and Amazon

Considering the 90-day investment horizon Centene Corp is expected to generate 0.75 times more return on investment than Amazon. However, Centene Corp is 1.33 times less risky than Amazon. It trades about -0.04 of its potential returns per unit of risk. Amazon Inc is currently generating about -0.15 per unit of risk. If you would invest  9,144  in Centene Corp on August 29, 2022 and sell it today you would lose (658.00)  from holding Centene Corp or give up 7.2% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthVery Weak
Accuracy98.46%
ValuesDaily Returns

Centene Corp  vs.  Amazon Inc

 Performance (%) 
       Timeline  
Centene Corp 
Centene Performance
0 of 100
Over the last 90 days Centene Corp has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, Centene Corp is not utilizing all of its potentials. The new stock price disturbance, may contribute to short-term losses for the investors.

Centene 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 conflicting performance in the last few months, the Stock's basic indicators remain quite persistent which may send shares a bit higher in December 2022. The latest mess may also be a sign of long-standing up-swing for the company institutional investors.

Amazon Price Channel

Centene Corp and Amazon Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Centene Corp and Amazon

The main advantage of trading using opposite Centene Corp and Amazon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Centene Corp 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.
Centene Corp vs. Concord Medical Services
Centene Corp vs. Community Health Systems
Centene Corp vs. Davita Healthcare Partners
Centene Corp vs. Hca Holdings
The idea behind Centene Corp 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. Groupon Cl A
Amazon vs. Aarons Holdings
Amazon vs. American Eagle Outfitters
Amazon vs. Abercrombie Fitch
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

Options Analysis
Analyze and evaluate options and option chains as a potential hedge for your portfolios
Go
Content Syndication
Quickly integrate customizable finance content to your own investment portal
Go
Insider Screener
Find insiders across different sectors to evaluate their impact on performance
Go
Portfolio Center
All portfolio management and optimization tools to improve performance of your portfolios
Go
Idea Optimizer
Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio
Go
Stock Tickers
Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites
Go
Alpha Finder
Use alpha and beta coefficients to find investment opportunities after accounting for the risk
Go
Aroon Oscillator
Analyze current equity momentum using Aroon Oscillator and other momentum ratios
Go
Insider Screener
Find insiders across different sectors to evaluate their impact on performance
Go
Pair Correlation
Compare performance and examine fundamental relationship between any two equity instruments
Go
Fundamentals Comparison
Compare fundamentals across multiple equities to find investing opportunities
Go
Stock Tickers
Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites
Go