Correlation Between Hudbay Minerals and Amazon

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

Diversification Opportunities for Hudbay Minerals and Amazon

-0.59
  Correlation Coefficient

Excellent diversification

The 3 months correlation between Hudbay and Amazon is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding Hudbay Minerals and Amazon Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amazon Inc and Hudbay Minerals 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 Hudbay Minerals 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 Hudbay Minerals i.e., Hudbay Minerals and Amazon go up and down completely randomly.

Pair Corralation between Hudbay Minerals and Amazon

Considering the 90-day investment horizon Hudbay Minerals is expected to generate 1.5 times more return on investment than Amazon. However, Hudbay Minerals is 1.5 times more volatile than Amazon Inc. It trades about 0.29 of its potential returns per unit of risk. Amazon Inc is currently generating about 0.0 per unit of risk. If you would invest  427.00  in Hudbay Minerals on September 2, 2022 and sell it today you would earn a total of  155.00  from holding Hudbay Minerals or generate 36.3% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthVery Weak
Accuracy100.0%
ValuesDaily Returns

Hudbay Minerals  vs.  Amazon Inc

 Performance (%) 
       Timeline  
Hudbay Minerals 
Hudbay Performance
9 of 100
Compared to the overall equity markets, risk-adjusted returns on investments in Hudbay Minerals are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. Even with relatively weak fundamental drivers, Hudbay Minerals revealed solid returns over the last few months and may actually be approaching a breakup point.

Hudbay 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 inconsistent 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

Hudbay Minerals and Amazon Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Hudbay Minerals and Amazon

The main advantage of trading using opposite Hudbay Minerals and Amazon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hudbay Minerals 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.
Hudbay Minerals vs. Walt Disney
Hudbay Minerals vs. ZIM Integrated Shipping
The idea behind Hudbay Minerals 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. Merck Company
Amazon vs. Walmart
Amazon vs. Chevron Corp
Amazon vs. Verizon Communications
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 Bond Directory module to find actively traded corporate debentures issued by US companies.

Other Complementary Tools

My Watchlist Analysis
Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like
Go
Equity Forecasting
Use basic forecasting models to generate price predictions and determine price momentum
Go
Analyst Recommendations
Analyst recommendations and target price estimates broken down by several categories
Go
Idea Breakdown
Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes
Go
Money Managers
Screen money managers from public funds and ETFs managed around the world
Go
Stock Screener
Find equities using custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook.
Go