Correlation Between Health Assurance and Amazon

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

Diversification Opportunities for Health Assurance and Amazon

-0.26
  Correlation Coefficient

Very good diversification

The 1 month correlation between Health and Amazon is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding Health Assurance Acquisition and Amazon Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amazon Inc and Health Assurance 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 Health Assurance Acquisition 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 Health Assurance i.e., Health Assurance and Amazon go up and down completely randomly.

Pair Corralation between Health Assurance and Amazon

Assuming the 90 days horizon Health Assurance Acquisition is expected to generate 0.05 times more return on investment than Amazon. However, Health Assurance Acquisition is 20.41 times less risky than Amazon. It trades about 0.0 of its potential returns per unit of risk. Amazon Inc is currently generating about -0.06 per unit of risk. If you would invest  1,005  in Health Assurance Acquisition on August 31, 2022 and sell it today you would earn a total of  0.00  from holding Health Assurance Acquisition or generate 0.0% return on investment over 90 days.
Time Period1 Month [change]
DirectionMoves Against 
StrengthInsignificant
Accuracy95.97%
ValuesDaily Returns

Health Assurance Acquisition  vs.  Amazon Inc

 Performance (%) 
       Timeline  
Health Assurance Acq 
Health Performance
0 of 100
Over the last 90 days Health Assurance Acquisition has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable fundamental indicators, Health Assurance is not utilizing all of its potentials. The current stock price uproar, may contribute to short-horizon losses for the private investors.
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

Health Assurance and Amazon Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Health Assurance and Amazon

The main advantage of trading using opposite Health Assurance and Amazon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Health Assurance 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.
Health Assurance vs. Ulta Beauty
The idea behind Health Assurance Acquisition 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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.

Other Complementary Tools

Equity Valuation
Check real value of public entities based on technical and fundamental data
Go
Stock Tickers
Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites
Go
Equity Analysis
Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities
Go
Insider Screener
Find insiders across different sectors to evaluate their impact on performance
Go
Global Markets Map
Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes
Go
Insider Screener
Find insiders across different sectors to evaluate their impact on performance
Go
Price Ceiling Movement
Calculate and plot Price Ceiling Movement for different equity instruments
Go
Stock Tickers
Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites
Go
Stock Tickers
Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites
Go
Portfolio Center
All portfolio management and optimization tools to improve performance of your portfolios
Go
Aroon Oscillator
Analyze current equity momentum using Aroon Oscillator and other momentum ratios
Go
Options Analysis
Analyze and evaluate options and option chains as a potential hedge for your portfolios
Go
Headlines Timeline
Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity
Go