Correlation Between Amazon CDR and BLACKROCK CDR
Can any of the company-specific risk be diversified away by investing in both Amazon CDR and BLACKROCK CDR 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 BLACKROCK CDR into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Amazon CDR and BLACKROCK CDR, you can compare the effects of market volatilities on Amazon CDR and BLACKROCK CDR 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 BLACKROCK CDR. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amazon CDR and BLACKROCK CDR.
Diversification Opportunities for Amazon CDR and BLACKROCK CDR
-0.4 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Amazon and BLACKROCK is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding Amazon CDR and BLACKROCK CDR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BLACKROCK CDR 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 BLACKROCK CDR. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BLACKROCK CDR has no effect on the direction of Amazon CDR i.e., Amazon CDR and BLACKROCK CDR go up and down completely randomly.
Pair Corralation between Amazon CDR and BLACKROCK CDR
Assuming the 90 days trading horizon Amazon CDR is expected to generate 1.43 times more return on investment than BLACKROCK CDR. However, Amazon CDR is 1.43 times more volatile than BLACKROCK CDR. It trades about 0.03 of its potential returns per unit of risk. BLACKROCK CDR is currently generating about -0.07 per unit of risk. If you would invest 2,634 in Amazon CDR on September 1, 2025 and sell it today you would earn a total of 81.00 from holding Amazon CDR or generate 3.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Amazon CDR vs. BLACKROCK CDR
Performance |
| Timeline |
| Amazon CDR |
| BLACKROCK CDR |
Amazon CDR and BLACKROCK CDR Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amazon CDR and BLACKROCK CDR
The main advantage of trading using opposite Amazon CDR and BLACKROCK CDR positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amazon CDR position performs unexpectedly, BLACKROCK CDR 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 BLACKROCK CDR will offset losses from the drop in BLACKROCK CDR's long position.| Amazon CDR vs. Omineca Mining and | Amazon CDR vs. High Liner Foods | Amazon CDR vs. Doman Building Materials | Amazon CDR vs. Precious Metals And |
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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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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