Correlation Between Tamarack Valley and Amazon CDR
Can any of the company-specific risk be diversified away by investing in both Tamarack Valley 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 Tamarack Valley and Amazon CDR into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Tamarack Valley Energy and Amazon CDR, you can compare the effects of market volatilities on Tamarack Valley 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 Tamarack Valley with a short position of Amazon CDR. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tamarack Valley and Amazon CDR.
Diversification Opportunities for Tamarack Valley and Amazon CDR
-0.41 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Tamarack and Amazon is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding Tamarack Valley Energy and Amazon CDR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amazon CDR and Tamarack Valley 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 Tamarack Valley Energy 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 Tamarack Valley i.e., Tamarack Valley and Amazon CDR go up and down completely randomly.
Pair Corralation between Tamarack Valley and Amazon CDR
Assuming the 90 days trading horizon Tamarack Valley Energy is expected to generate 0.94 times more return on investment than Amazon CDR. However, Tamarack Valley Energy is 1.06 times less risky than Amazon CDR. It trades about 0.17 of its potential returns per unit of risk. Amazon CDR is currently generating about -0.06 per unit of risk. If you would invest 504.00 in Tamarack Valley Energy on July 21, 2025 and sell it today you would earn a total of 99.00 from holding Tamarack Valley Energy or generate 19.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tamarack Valley Energy vs. Amazon CDR
Performance |
| Timeline |
| Tamarack Valley Energy |
| Amazon CDR |
Tamarack Valley and Amazon CDR Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tamarack Valley and Amazon CDR
The main advantage of trading using opposite Tamarack Valley and Amazon CDR positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tamarack Valley 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.| Tamarack Valley vs. NuVista Energy | Tamarack Valley vs. Athabasca Oil Corp | Tamarack Valley vs. Paramount Resources | Tamarack Valley vs. Baytex Energy Corp |
| 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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