Correlation Between Amazon and ASR Nederland
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 Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 98.44% |
| Values | Daily Returns |
Amazon Inc vs. ASR Nederland NV
Performance |
| Timeline |
| Amazon Inc |
| ASR Nederland NV |
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.| Amazon vs. Alibaba Group Holding | Amazon vs. ATRenew Inc DRC | Amazon vs. Liquidity Services | Amazon vs. GameStop Corp |
| ASR Nederland vs. Aegon NV | ASR Nederland vs. NN Group NV | ASR Nederland vs. CVC Capital Partners | ASR Nederland vs. ABN Amro Group |
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.
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