Correlation Between Amazon CDR and Aimia Pref
Can any of the company-specific risk be diversified away by investing in both Amazon CDR and Aimia Pref 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 Amazon CDR and Aimia Pref into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Amazon CDR and Aimia Pref C, you can compare the effects of market volatilities on Amazon CDR and Aimia Pref 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 Amazon CDR with a short position of Aimia Pref. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amazon CDR and Aimia Pref.
Diversification Opportunities for Amazon CDR and Aimia Pref
-0.13 | Correlation Coefficient |
Good diversification
The 3 months correlation between Amazon and Aimia is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding Amazon CDR and Aimia Pref C in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aimia Pref C and Amazon CDR 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 Amazon CDR are associated (or correlated) with Aimia Pref. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aimia Pref C has no effect on the direction of Amazon CDR i.e., Amazon CDR and Aimia Pref go up and down completely randomly.
Pair Corralation between Amazon CDR and Aimia Pref
Assuming the 90 days trading horizon Amazon CDR is expected to generate 3.94 times more return on investment than Aimia Pref. However, Amazon CDR is 3.94 times more volatile than Aimia Pref C. It trades about 0.26 of its potential returns per unit of risk. Aimia Pref C is currently generating about -0.06 per unit of risk. If you would invest 2,529 in Amazon CDR on August 13, 2025 and sell it today you would earn a total of 365.00 from holding Amazon CDR or generate 14.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Amazon CDR vs. Aimia Pref C
Performance |
| Timeline |
| Amazon CDR |
| Aimia Pref C |
Amazon CDR and Aimia Pref Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amazon CDR and Aimia Pref
The main advantage of trading using opposite Amazon CDR and Aimia Pref positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amazon CDR position performs unexpectedly, Aimia Pref 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 Aimia Pref will offset losses from the drop in Aimia Pref's long position.| Amazon CDR vs. Alphabet Inc CDR | Amazon CDR vs. NVIDIA CDR | Amazon CDR vs. Microsoft Corp CDR | Amazon CDR vs. Tesla Inc CDR |
| Aimia Pref vs. Life Banc Split | Aimia Pref vs. Canadian Banc Corp | Aimia Pref vs. North American Financial | Aimia Pref vs. Queens Road Capital |
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 the Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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