Correlation Analysis Between NESTLE SA and Amazon Com

This module allows you to analyze existing cross correlation between NESTLE SA and Amazon Com. You can compare the effects of market volatilities on NESTLE SA and Amazon Com 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 NESTLE SA with a short position of Amazon Com. See also your portfolio center. Please also check ongoing floating volatility patterns of NESTLE SA and Amazon Com.
Horizon     30 Days    Login   to change
Symbolsvs
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Comparative Performance

NESTLE SA  
00

Risk-Adjusted Performance

Over the last 30 days NESTLE SA has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound fundamental drivers, NESTLE SA is not utilizing all of its potentials. The current stock price tumult, may contribute to shorter-term losses for the shareholders.
Amazon Com  
00

Risk-Adjusted Performance

Over the last 30 days Amazon Com has generated negative risk-adjusted returns adding no value to investors with long positions. Allthough quite persistent forward indicators, Amazon Com is not utilizing all of its potentials. The ongoing stock price mess, may contribute to short term losses for the partners.

NESTLE SA and Amazon Com Volatility Contrast

 Predicted Return Density 
      Returns 

NESTLE SA  vs.  Amazon Com Inc

 Performance (%) 
      Timeline 

Pair Volatility

Assuming 30 trading days horizon, NESTLE SA is expected to generate 1.43 times more return on investment than Amazon Com. However, NESTLE SA is 1.43 times more volatile than Amazon Com. It trades about -0.03 of its potential returns per unit of risk. Amazon Com is currently generating about -0.06 per unit of risk. If you would invest  10,807  in NESTLE SA on November 9, 2019 and sell it today you would lose (359.00)  from holding NESTLE SA or give up 3.32% of portfolio value over 30 days.

Pair Corralation between NESTLE SA and Amazon Com

0.3
Time Period3 Months [change]
DirectionPositive 
StrengthVery Weak
Accuracy98.46%
ValuesDaily Returns

Diversification Opportunities for NESTLE SA and Amazon Com

NESTLE SA diversification synergy

Weak diversification

Overlapping area represents the amount of risk that can be diversified away by holding NESTLE SA and Amazon Com Inc in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Amazon Com and NESTLE SA 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 NESTLE SA are associated (or correlated) with Amazon Com. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amazon Com has no effect on the direction of NESTLE SA i.e. NESTLE SA and Amazon Com go up and down completely randomly.
See also your portfolio center. Please also try Watchlist Optimization module to optimize watchlists to build efficient portfolio or rebalance existing positions based on mean-variance optimization algorithm.


 
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