Correlation Between Li-Cycle Holdings and Amazon

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

Diversification Opportunities for Li-Cycle Holdings and Amazon

  Correlation Coefficient

Very weak diversification

The 3 months correlation between Li-Cycle and Amazon is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding Li-Cycle Holdings Corp and Amazon Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amazon Inc and Li-Cycle Holdings 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 Li-Cycle Holdings 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 Li-Cycle Holdings i.e., Li-Cycle Holdings and Amazon go up and down completely randomly.

Pair Corralation between Li-Cycle Holdings and Amazon

Given the investment horizon of 90 days Li-Cycle Holdings Corp is expected to generate 0.94 times more return on investment than Amazon. However, Li-Cycle Holdings Corp is 1.06 times less risky than Amazon. It trades about 0.01 of its potential returns per unit of risk. Amazon Inc is currently generating about -0.1 per unit of risk. If you would invest  596.00  in Li-Cycle Holdings Corp on August 31, 2022 and sell it today you would lose (1.00)  from holding Li-Cycle Holdings Corp or give up 0.17% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
ValuesDaily Returns

Li-Cycle Holdings Corp  vs.  Amazon Inc

 Performance (%) 
Li-Cycle Holdings Corp 
Li-Cycle Performance
0 of 100
Over the last 90 days Li-Cycle Holdings Corp has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest sluggish performance, the Stock's fundamental indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the company investors.

Li-Cycle 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

Li-Cycle Holdings and Amazon Volatility Contrast

   Predicted Return Density   

Pair Trading with Li-Cycle Holdings and Amazon

The main advantage of trading using opposite Li-Cycle Holdings and Amazon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Li-Cycle Holdings 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.
Li-Cycle Holdings vs. Waste Management
Li-Cycle Holdings vs. Republic Services
Li-Cycle Holdings vs. Gfl Environmental
Li-Cycle Holdings vs. Stericycle
The idea behind Li-Cycle Holdings 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 Watchlist Optimization module to optimize watchlists to build efficient portfolio or rebalance existing positions based on mean-variance optimization algorithm.

Other Complementary Tools

Insider Screener
Find insiders across different sectors to evaluate their impact on performance
Stock Tickers
Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites
Volatility Analysis
Get historical volatility and risk analysis based on latest market data
Analyst Recommendations
Analyst recommendations and target price estimates broken down by several categories
Premium Stories
Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope
Analyst Recommendations
Analyst recommendations and target price estimates broken down by several categories
Headlines Timeline
Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity
Global Markets Map
Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes
Portfolio Volatility
Check portfolio volatility and analyze historical return density to properly model market risk
Options Analysis
Analyze and evaluate options and option chains as a potential hedge for your portfolios