Correlation Between Shore Bancshares and Amazon

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

Diversification Opportunities for Shore Bancshares and Amazon

-0.65
  Correlation Coefficient

Excellent diversification

The 3 months correlation between Shore and Amazon is -0.65. Overlapping area represents the amount of risk that can be diversified away by holding Shore Bancshares and Amazon Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amazon Inc and Shore Bancshares 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 Shore Bancshares 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 Shore Bancshares i.e., Shore Bancshares and Amazon go up and down completely randomly.

Pair Corralation between Shore Bancshares and Amazon

Given the investment horizon of 90 days Shore Bancshares is expected to generate 0.6 times more return on investment than Amazon. However, Shore Bancshares is 1.68 times less risky than Amazon. It trades about 0.06 of its potential returns per unit of risk. Amazon Inc is currently generating about -0.03 per unit of risk. If you would invest  1,348  in Shore Bancshares on September 2, 2022 and sell it today you would earn a total of  643.00  from holding Shore Bancshares or generate 47.7% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthWeak
Accuracy99.8%
ValuesDaily Returns

Shore Bancshares  vs.  Amazon Inc

 Performance (%) 
       Timeline  
Shore Bancshares 
Shore Performance
6 of 100
Compared to the overall equity markets, risk-adjusted returns on investments in Shore Bancshares are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. Despite nearly unsteady fundamental drivers, Shore Bancshares may actually be approaching a critical reversion point that can send shares even higher in January 2023.

Shore 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

Shore Bancshares and Amazon Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Shore Bancshares and Amazon

The main advantage of trading using opposite Shore Bancshares and Amazon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shore Bancshares 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.
Shore Bancshares vs. Procter Gamble
The idea behind Shore Bancshares 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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.

Other Complementary Tools

Options Analysis
Analyze and evaluate options and option chains as a potential hedge for your portfolios
Go
ETF Directory
Find actively traded Exchange Traded Funds (ETF) from around the world
Go
Portfolio Optimization
Compute new portfolio that will generate highest expected return given your specified tolerance for risk
Go
Idea Analyzer
Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas
Go
Price Transformation
Use Price Transformation models to analyze depth of different equity instruments across global markets
Go
Alpha Finder
Use alpha and beta coefficients to find investment opportunities after accounting for the risk
Go
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
Instant Ratings
Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance
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
Analyst Recommendations
Analyst recommendations and target price estimates broken down by several categories
Go
Portfolio Comparator
Compare the composition, asset allocations and performance of any two portfolios in your account
Go