Correlation Between Amazon and Imgp Sbh

Can any of the company-specific risk be diversified away by investing in both Amazon and Imgp Sbh 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 Imgp Sbh into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Amazon Inc and Imgp Sbh Focused, you can compare the effects of market volatilities on Amazon and Imgp Sbh 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 Imgp Sbh. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amazon and Imgp Sbh.

Diversification Opportunities for Amazon and Imgp Sbh

0.43

Correlation Coefficient

Amazon  Imgp Sbh

Very weak diversification

The 3 months correlation between Amazon and Imgp is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding Amazon Inc and Imgp Sbh Focused in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Imgp Sbh Focused 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 Imgp Sbh. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Imgp Sbh Focused has no effect on the direction of Amazon i.e., Amazon and Imgp Sbh go up and down completely randomly.

Pair Corralation between Amazon and Imgp Sbh

Given the investment horizon of 90 days Amazon Inc is expected to under-perform the Imgp Sbh. In addition to that, Amazon is 1.48 times more volatile than Imgp Sbh Focused. It trades about -0.03 of its total potential returns per unit of risk. Imgp Sbh Focused is currently generating about 0.04 per unit of volatility. If you would invest  1,433  in Imgp Sbh Focused on July 24, 2025 and sell it today you would earn a total of  35.00  from holding Imgp Sbh Focused or generate 2.44% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	100.0%
Values	Daily Returns

Amazon Inc  vs.  Imgp Sbh Focused

Amazon Inc

Risk-Adjusted Performance

Weakest

Over the last 90 days Amazon Inc has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy basic indicators, Amazon is not utilizing all of its potentials. The current stock price disarray, may contribute to short-term losses for the investors.

Imgp Sbh Focused

Risk-Adjusted Performance

Weak

Over the last 90 days Imgp Sbh Focused has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong basic indicators, Imgp Sbh is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Amazon and Imgp Sbh

The main advantage of trading using opposite Amazon and Imgp Sbh positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amazon position performs unexpectedly, Imgp Sbh 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 Imgp Sbh will offset losses from the drop in Imgp Sbh's long position.

The idea behind Amazon Inc and Imgp Sbh Focused 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.

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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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.