Correlation Between Amazon and WisdomTree International
Can any of the company-specific risk be diversified away by investing in both Amazon and WisdomTree International 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 WisdomTree International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Amazon Inc and WisdomTree International Equity, you can compare the effects of market volatilities on Amazon and WisdomTree International 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 WisdomTree International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amazon and WisdomTree International.
Diversification Opportunities for Amazon and WisdomTree International
-0.03 | Correlation Coefficient |
Good diversification
The 3 months correlation between Amazon and WisdomTree is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding Amazon Inc and WisdomTree International Equit in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WisdomTree International 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 WisdomTree International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of WisdomTree International has no effect on the direction of Amazon i.e., Amazon and WisdomTree International go up and down completely randomly.
Pair Corralation between Amazon and WisdomTree International
Given the investment horizon of 90 days Amazon Inc is expected to under-perform the WisdomTree International. In addition to that, Amazon is 2.69 times more volatile than WisdomTree International Equity. It trades about -0.05 of its total potential returns per unit of risk. WisdomTree International Equity is currently generating about 0.13 per unit of volatility. If you would invest 6,313 in WisdomTree International Equity on July 21, 2025 and sell it today you would earn a total of 372.00 from holding WisdomTree International Equity or generate 5.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Amazon Inc vs. WisdomTree International Equit
Performance |
| Timeline |
| Amazon Inc |
| WisdomTree International |
Amazon and WisdomTree International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amazon and WisdomTree International
The main advantage of trading using opposite Amazon and WisdomTree International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amazon position performs unexpectedly, WisdomTree International 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 WisdomTree International will offset losses from the drop in WisdomTree International's long position.| Amazon vs. Alibaba Group Holding | Amazon vs. ATRenew Inc DRC | Amazon vs. Liquidity Services | Amazon vs. GameStop Corp |
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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
Other Complementary Tools
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets |