Amazon Correlations

AMZN Stock

MXN 4,242 47.29 1.10%

The current 90-days correlation between Amazon Inc and UnitedHealth Group Incorporated is 0.13 (i.e., Average diversification). The correlation of Amazon is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak. If the correlation is 0, the equities are not correlated; they are entirely random.

Amazon Correlation With Market

Good diversification

The correlation between Amazon Inc and DJI is -0.08 (i.e., Good diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Amazon Inc and DJI in the same portfolio, assuming nothing else is changed.

The ability to find closely correlated positions to Amazon could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Amazon when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Amazon - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Amazon Inc to buy it.

Moving together with Amazon Stock

0.81	JPM	JPMorgan Chase	Pair Corr
0.86	C	Citigroup	Pair Corr
0.86	HBCN	HSBC Holdings plc	Pair Corr
0.72	TSMN	Taiwan Semiconductor	Pair Corr
0.88	BAC	Bank of America	Pair Corr
0.84	BCSN	Barclays PLC	Pair Corr
0.88	INTC	Intel	Pair Corr
0.83	DIS	Walt Disney	Pair Corr
0.86	NFLX	Netflix	Pair Corr
0.61	AAPL	Apple Inc	Pair Corr
0.9	BMY	Bristol Myers Squibb	Pair Corr

Moving against Amazon Stock

0.45

TMN

Toyota Motor

Pair Corr

Related Correlations Analysis

	SCCO	BNS	SMSNN	UNH	PRU	LYGN	GNW	VZ
SCCO		0.68	-0.68	-0.03	-0.07	0.0	0.0	0.3	SCCO
BNS	0.68		-0.79	0.29	0.39	0.0	0.0	0.52	BNS
SMSNN	-0.68	-0.79		-0.31	-0.36	0.0	0.0	-0.5	SMSNN
UNH	-0.03	0.29	-0.31		0.4	0.0	0.0	0.12	UNH
PRU	-0.07	0.39	-0.36	0.4		0.0	0.0	0.42	PRU
LYGN	0.0	0.0	0.0	0.0	0.0		0.0	0.0	LYGN
GNW	0.0	0.0	0.0	0.0	0.0	0.0		0.0	GNW
VZ	0.3	0.52	-0.5	0.12	0.42	0.0	0.0		VZ
	SCCO	BNS	SMSNN	UNH	PRU	LYGN	GNW	VZ

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Correlation Matchups

Over a given time period, the two securities move together when the Correlation Coefficient is positive. Conversely, the two assets move in opposite directions when the Correlation Coefficient is negative. Determining your positions' relationship to each other is valuable for analyzing and projecting your portfolio's future expected return and risk.

High positive correlations

BNS	+ 0.68	SCCO
VZ	+ 0.52	BNS
VZ	+ 0.42	PRU
PRU	+ 0.4	UNH
PRU	+ 0.39	BNS
VZ	+ 0.3	SCCO

High negative correlations

SMSNN	- 0.79	BNS
SMSNN	- 0.68	SCCO
VZ	- 0.5	SMSNN
PRU	- 0.36	SMSNN
UNH	- 0.31	SMSNN
PRU	- 0.07	SCCO

Risk-Adjusted Indicators

There is a big difference between Amazon Stock performing well and Amazon Company doing well as a business compared to the competition. There are so many exceptions to the norm that investors cannot definitively determine what's good or bad unless they analyze Amazon's multiple risk-adjusted performance indicators across the competitive landscape. These indicators are quantitative in nature and help investors forecast volatility and risk-adjusted expected returns across various positions.

	Mean Deviation	Jensen Alpha	Sortino Ratio	Treynor Ratio	Semi Deviation	Expected Shortfall	Potential Upside	Value @Risk	Maximum Drawdown
SCCO	0.54	0.13	0.00	1.09	0.00	0.00	0.00	0.00	20.00
BNS	0.88	0.47	0.00	9.66	0.00	0.00	3.03	0.00	6.40
SMSNN	1.12	(0.46)	0.00	3.03	0.00	0.00	0.00	(5.58)	14.92
UNH	1.32	0.25	0.02	(0.33)	2.10	(1.59)	2.59	(2.70)	11.25
PRU	0.04	0.01	0.00	1.50	0.00	0.00	0.00	0.00	1.32
LYGN	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00
GNW	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00
VZ	1.47	0.27	0.06	2.89	1.86	(1.75)	3.92	(3.53)	11.97

Be your own money manager

Our tools can tell you how much better you can do entering a position in Amazon without increasing your portfolio risk or giving up the expected return. As an individual investor, you need to find a reliable way to track all your investment portfolios. However, your requirements will often be based on how much of the process you decide to do yourself. In addition to allowing all investors analytical transparency into all their portfolios, our tools can evaluate risk-adjusted returns of your individual positions relative to your overall portfolio.

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