Correlation Between Amazon CDR and Gibson Energy
Can any of the company-specific risk be diversified away by investing in both Amazon CDR and Gibson Energy 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 Gibson Energy into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Amazon CDR and Gibson Energy, you can compare the effects of market volatilities on Amazon CDR and Gibson Energy 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 Gibson Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amazon CDR and Gibson Energy.
Diversification Opportunities for Amazon CDR and Gibson Energy
-0.34 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Amazon and Gibson is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding Amazon CDR and Gibson Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gibson Energy 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 Gibson Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gibson Energy has no effect on the direction of Amazon CDR i.e., Amazon CDR and Gibson Energy go up and down completely randomly.
Pair Corralation between Amazon CDR and Gibson Energy
Assuming the 90 days trading horizon Amazon CDR is expected to generate 1.56 times more return on investment than Gibson Energy. However, Amazon CDR is 1.56 times more volatile than Gibson Energy. It trades about 0.03 of its potential returns per unit of risk. Gibson Energy is currently generating about 0.0 per unit of risk. If you would invest 2,644 in Amazon CDR on September 3, 2025 and sell it today you would earn a total of 70.00 from holding Amazon CDR or generate 2.65% 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. Gibson Energy
Performance |
| Timeline |
| Amazon CDR |
| Gibson Energy |
Amazon CDR and Gibson Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amazon CDR and Gibson Energy
The main advantage of trading using opposite Amazon CDR and Gibson Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amazon CDR position performs unexpectedly, Gibson Energy 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 Gibson Energy will offset losses from the drop in Gibson Energy's long position.| Amazon CDR vs. Partners Value Investments | Amazon CDR vs. DGL Investments No1 | Amazon CDR vs. Ramp Metals | Amazon CDR vs. Mogotes Metals |
| Gibson Energy vs. North American Construction | Gibson Energy vs. CubicFarm Systems Corp | Gibson Energy vs. Primaris Retail RE | Gibson Energy vs. Quipt Home Medical |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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