Correlation Between Amazon and Jacob Internet
Can any of the company-specific risk be diversified away by investing in both Amazon and Jacob Internet 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 Jacob Internet into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Amazon Inc and Jacob Internet Fund, you can compare the effects of market volatilities on Amazon and Jacob Internet 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 Jacob Internet. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amazon and Jacob Internet.
Diversification Opportunities for Amazon and Jacob Internet
0.16 | Correlation Coefficient |
Average diversification
The 3 months correlation between Amazon and Jacob is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding Amazon Inc and Jacob Internet Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jacob Internet 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 Jacob Internet. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jacob Internet has no effect on the direction of Amazon i.e., Amazon and Jacob Internet go up and down completely randomly.
Pair Corralation between Amazon and Jacob Internet
Given the investment horizon of 90 days Amazon Inc is expected to under-perform the Jacob Internet. In addition to that, Amazon is 1.06 times more volatile than Jacob Internet Fund. It trades about -0.05 of its total potential returns per unit of risk. Jacob Internet Fund is currently generating about 0.06 per unit of volatility. If you would invest 697.00 in Jacob Internet Fund on July 20, 2025 and sell it today you would earn a total of 42.00 from holding Jacob Internet Fund or generate 6.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Amazon Inc vs. Jacob Internet Fund
Performance |
| Timeline |
| Amazon Inc |
| Jacob Internet |
Amazon and Jacob Internet Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amazon and Jacob Internet
The main advantage of trading using opposite Amazon and Jacob Internet positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amazon position performs unexpectedly, Jacob Internet 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 Jacob Internet will offset losses from the drop in Jacob Internet's long position.| Amazon vs. Alibaba Group Holding | Amazon vs. ATRenew Inc DRC | Amazon vs. Liquidity Services | Amazon vs. GameStop Corp |
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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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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