Correlation Between Amazon and ASR Nederland

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

Diversification Opportunities for Amazon and ASR Nederland

0.17
  Correlation Coefficient

Average diversification

The 3 months correlation between Amazon and ASR is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding Amazon Inc and ASR Nederland NV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ASR Nederland NV and Amazon 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 Inc are associated (or correlated) with ASR Nederland. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ASR Nederland NV has no effect on the direction of Amazon i.e., Amazon and ASR Nederland go up and down completely randomly.

Pair Corralation between Amazon and ASR Nederland

Given the investment horizon of 90 days Amazon Inc is expected to under-perform the ASR Nederland. In addition to that, Amazon is 2.03 times more volatile than ASR Nederland NV. It trades about -0.03 of its total potential returns per unit of risk. ASR Nederland NV is currently generating about 0.03 per unit of volatility. If you would invest  5,639  in ASR Nederland NV on July 26, 2025 and sell it today you would earn a total of  87.00  from holding ASR Nederland NV or generate 1.54% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthInsignificant
Accuracy98.44%
ValuesDaily Returns

Amazon Inc  vs.  ASR Nederland NV

 Performance 
       Timeline  
Amazon Inc 

Risk-Adjusted Performance

Weakest

 
Weak
 
Strong
Over the last 90 days Amazon Inc has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy basic indicators, Amazon is not utilizing all of its potentials. The current stock price disarray, may contribute to short-term losses for the investors.
ASR Nederland NV 

Risk-Adjusted Performance

Weak

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in ASR Nederland NV are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Despite somewhat strong basic indicators, ASR Nederland is not utilizing all of its potentials. The newest stock price disturbance, may contribute to short-term losses for the investors.

Amazon and ASR Nederland Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Amazon and ASR Nederland

The main advantage of trading using opposite Amazon and ASR Nederland positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amazon position performs unexpectedly, ASR Nederland 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 ASR Nederland will offset losses from the drop in ASR Nederland's long position.
The idea behind Amazon Inc and ASR Nederland NV 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.
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.

Other Complementary Tools

Fundamental Analysis
View fundamental data based on most recent published financial statements
CEOs Directory
Screen CEOs from public companies around the world
Portfolio Rebalancing
Analyze risk-adjusted returns against different time horizons to find asset-allocation targets
Equity Analysis
Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities
Top Crypto Exchanges
Search and analyze digital assets across top global cryptocurrency exchanges