Correlation Between Amazon and MMTEC
Can any of the company-specific risk be diversified away by investing in both Amazon and MMTEC 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 MMTEC into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Amazon Inc and MMTEC Inc, you can compare the effects of market volatilities on Amazon and MMTEC 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 MMTEC. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amazon and MMTEC.
Diversification Opportunities for Amazon and MMTEC
Weak diversification
The 3 months correlation between Amazon and MMTEC is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding Amazon Inc and MMTEC Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MMTEC Inc 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 MMTEC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MMTEC Inc has no effect on the direction of Amazon i.e., Amazon and MMTEC go up and down completely randomly.
Pair Corralation between Amazon and MMTEC
Given the investment horizon of 90 days Amazon is expected to generate 1.88 times less return on investment than MMTEC. But when comparing it to its historical volatility, Amazon Inc is 3.55 times less risky than MMTEC. It trades about 0.02 of its potential returns per unit of risk. MMTEC Inc is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 92.00 in MMTEC Inc on July 12, 2025 and sell it today you would lose (7.00) from holding MMTEC Inc or give up 7.61% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Amazon Inc vs. MMTEC Inc
Performance |
| Timeline |
| Amazon Inc |
| MMTEC Inc |
Amazon and MMTEC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amazon and MMTEC
The main advantage of trading using opposite Amazon and MMTEC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amazon position performs unexpectedly, MMTEC 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 MMTEC will offset losses from the drop in MMTEC's long position.The idea behind Amazon Inc and MMTEC Inc 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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
Other Complementary Tools
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities |