Correlation Between FNB Corp and Amazon

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

Diversification Opportunities for FNB Corp and Amazon

-0.77
  Correlation Coefficient

Pay attention - limited upside

The 3 months correlation between FNB Corp and Amazon is -0.77. Overlapping area represents the amount of risk that can be diversified away by holding FNB Corp and Amazon Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amazon Inc and FNB 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 FNB 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 FNB Corp i.e., FNB Corp and Amazon go up and down completely randomly.

Pair Corralation between FNB Corp and Amazon

Considering the 90-day investment horizon FNB Corp is expected to under-perform the Amazon. But the stock apears to be less risky and, when comparing its historical volatility, FNB Corp is 2.3 times less risky than Amazon. The stock trades about -0.06 of its potential returns per unit of risk. The Amazon Inc is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest  9,212  in Amazon Inc on September 3, 2022 and sell it today you would earn a total of  338.00  from holding Amazon Inc or generate 3.67% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthWeak
Accuracy95.45%
ValuesDaily Returns

FNB Corp  vs.  Amazon Inc

 Performance (%) 
       Timeline  
FNB Corp 
FNB Corp Performance
13 of 100
Compared to the overall equity markets, risk-adjusted returns on investments in FNB Corp are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. Despite somewhat conflicting basic indicators, FNB Corp sustained solid returns over the last few months and may actually be approaching a breakup point.

FNB Corp 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

FNB Corp and Amazon Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with FNB Corp and Amazon

The main advantage of trading using opposite FNB Corp and Amazon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FNB 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.
FNB Corp vs. Linde PLC
FNB Corp vs. GROWTH FUND OF
FNB Corp vs. VANGUARD SMALL-CAP GROWTH
The idea behind FNB 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. The Clorox
Amazon vs. Comcast Corp
Amazon vs. Chipotle Mexican Grill
Amazon vs. Linde PLC
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..

Other Complementary Tools

Money Flow Index
Determine momentum by analyzing Money Flow Index and other technical indicators
Go
Performance Analysis
Check effects of mean-variance optimization against your current asset allocation
Go
Sync Your Broker
Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors.
Go
Portfolio Diagnostics
Use generated alerts and portfolio events aggregator to diagnose current holdings
Go
Transaction History
View history of all your transactions and understand their impact on performance
Go
Fundamental Analysis
View fundamental data based on most recent published financial statements
Go
Volatility Analysis
Get historical volatility and risk analysis based on latest market data
Go
Portfolio Suggestion
Get suggestions outside of your existing asset allocation including your own model portfolios
Go
Portfolio Manager
State of the art Portfolio Manager to monitor and improve performance of your invested capital
Go