Correlation Between Gildan Activewear and Amazon CDR
Can any of the company-specific risk be diversified away by investing in both Gildan Activewear and Amazon CDR 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 Gildan Activewear and Amazon CDR into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Gildan Activewear and Amazon CDR, you can compare the effects of market volatilities on Gildan Activewear and Amazon CDR 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 Gildan Activewear with a short position of Amazon CDR. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gildan Activewear and Amazon CDR.
Diversification Opportunities for Gildan Activewear and Amazon CDR
-0.48 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Gildan and Amazon is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding Gildan Activewear and Amazon CDR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amazon CDR and Gildan Activewear 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 Gildan Activewear are associated (or correlated) with Amazon CDR. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amazon CDR has no effect on the direction of Gildan Activewear i.e., Gildan Activewear and Amazon CDR go up and down completely randomly.
Pair Corralation between Gildan Activewear and Amazon CDR
Assuming the 90 days trading horizon Gildan Activewear is expected to generate 1.17 times more return on investment than Amazon CDR. However, Gildan Activewear is 1.17 times more volatile than Amazon CDR. It trades about 0.15 of its potential returns per unit of risk. Amazon CDR is currently generating about -0.06 per unit of risk. If you would invest 7,034 in Gildan Activewear on July 20, 2025 and sell it today you would earn a total of 1,473 from holding Gildan Activewear or generate 20.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gildan Activewear vs. Amazon CDR
Performance |
| Timeline |
| Gildan Activewear |
| Amazon CDR |
Gildan Activewear and Amazon CDR Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gildan Activewear and Amazon CDR
The main advantage of trading using opposite Gildan Activewear and Amazon CDR positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gildan Activewear position performs unexpectedly, Amazon CDR 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 Amazon CDR will offset losses from the drop in Amazon CDR's long position.| Gildan Activewear vs. CCL Industries | Gildan Activewear vs. CCL Industries | Gildan Activewear vs. Canadian Tire | Gildan Activewear vs. Canadian Tire |
| Amazon CDR vs. Orbit Garant Drilling | Amazon CDR vs. Enduro Metals Corp | Amazon CDR vs. Patriot Battery Metals | Amazon CDR vs. Fairfax Financial Holdings |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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