Correlation Between United Parcel and Amazon

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

Diversification Opportunities for United Parcel and Amazon

  Correlation Coefficient

Significant diversification

The 3 months correlation between United and Amazon is 0.09. Overlapping area represents the amount of risk that can be diversified away by holding United Parcel Service and Amazon Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amazon Inc and United Parcel 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 United Parcel Service 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 United Parcel i.e., United Parcel and Amazon go up and down completely randomly.

Pair Corralation between United Parcel and Amazon

Considering the 90-day investment horizon United Parcel Service is expected to generate 0.67 times more return on investment than Amazon. However, United Parcel Service is 1.5 times less risky than Amazon. It trades about 0.1 of its potential returns per unit of risk. Amazon Inc is currently generating about 0.02 per unit of risk. If you would invest  16,730  in United Parcel Service on September 9, 2022 and sell it today you would earn a total of  737.00  from holding United Parcel Service or generate 4.41% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
ValuesDaily Returns

United Parcel Service  vs.  Amazon Inc

 Performance (%) 
United Parcel Service 
United Performance
0 of 100
Over the last 90 days United Parcel Service has generated negative risk-adjusted returns adding no value to investors with long positions. Even with latest weak performance, the Stock's basic indicators remain invariable and the latest agitation on Wall Street may also be a sign of long-running gains for the enterprise retail investors.

United 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

United Parcel and Amazon Volatility Contrast

   Predicted Return Density   

Pair Trading with United Parcel and Amazon

The main advantage of trading using opposite United Parcel and Amazon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if United Parcel 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.
United Parcel vs. CSX Corporation
United Parcel vs. Johnson Johnson
United Parcel vs. The Boeing
United Parcel vs. Home Depot
The idea behind United Parcel Service 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. Best Buy Co
Amazon vs. The Clorox
Amazon vs. Walmart
Amazon vs. JPMorgan Chase Co
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 Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..

Other Complementary Tools

Portfolio File Import
Quickly import all of your third-party portfolios from your local drive in csv format
Price Exposure Probability
Analyze equity upside and downside potential for a given time horizon across multiple markets
Piotroski F Score
Get Piotroski F Score based on binary analysis strategy of nine different fundamentals
Portfolio Diagnostics
Use generated alerts and portfolio events aggregator to diagnose current holdings
Bond Analysis
Evaluate and analyze corporate bonds as a potential investment for your portfolios.
Technical Analysis
Check basic technical indicators and analysis based on most latest market data
Portfolio Anywhere
Track or share privately all of your investments from the convenience of any device
Share Portfolio
Track or share privately all of your investments from the convenience of any device
CEO Directory
Screen CEOs from public companies around the world
Portfolio Manager
State of the art Portfolio Manager to monitor and improve performance of your invested capital
Equity Analysis
Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities
Price Ceiling Movement
Calculate and plot Price Ceiling Movement for different equity instruments
Alpha Finder
Use alpha and beta coefficients to find investment opportunities after accounting for the risk