AMZN vs GOOG: Stock Returns, Risk & Volatility (2026)

Q: Which is a better investment: AMZN or GOOG?

Over the past year, GOOG looks like the better investment: it had higher total return (GOOG +93.7% vs AMZN +18.0%) and a higher Sharpe ratio (GOOG 2.24 vs AMZN 0.54). On risk, GOOG was less volatile (GOOG 30.0% vs AMZN 33.9%), GOOG had a smaller max drawdown (GOOG -20.8% vs AMZN -21.7%), and GOOG had less severe losses on the worst 5% of days (Expected Shortfall of GOOG -3.32% vs AMZN -4.49%).

Written by Gale Finance Team

Reviewed by Sid Kalla CFA Charterholder

Quick answer

Which is a better investment: AMZN or GOOG?

Over the past year, GOOG outperformed (+18.0% vs +93.7%) with a Sharpe ratio of 2.24.

Total Return

AMZN +18.0%

GOOG WIN +93.7%

Sharpe Ratio

AMZN 0.54

GOOG WIN 2.24

Annualized Volatility

AMZN 33.9%

GOOG WIN 30.0%

Max Drawdown

AMZN -21.7%

GOOG WIN -20.8%

Analysis period: 2025-04-03 to 2026-04-01

AMZN Total Return

↑ +18.0%

GOOG Total Return

↑ +93.7%

Relative Performance of AMZN vs GOOG (Normalized to 100)

AMZN GOOG

Normalized to 100 at start date for comparison

Key Takeaways

Total Return: AMZN delivered a +18.0% total return, while GOOG returned +93.7% over the same period. GOOG outperformed on total returns.
Risk-Adjusted Return (Sharpe Ratio): GOOG had a higher Sharpe (2.24 vs 0.54), indicating better risk-adjusted performance.
Volatility (Annualized): AMZN was more volatile, with 33.9% annualized volatility, versus 30.0% for GOOG.
Maximum Drawdown: GOOG's maximum drawdown was -20.8%, while AMZN experienced a deeper drawdown of -21.7%.
Tail Risk (VaR & Expected Shortfall): At the 5% level (daily log returns), AMZN's VaR was -3.09% and its Expected Shortfall (CVaR) was -4.49%; GOOG's were -2.33% and -3.32%. VaR is the cutoff; Expected Shortfall is the average move on the worst days.
Skew & Kurtosis: Skew: AMZN 0.60 vs GOOG 0.64. Excess kurtosis: AMZN 5.09 vs GOOG 4.12. Negative skew leans downside; higher excess kurtosis means fatter tails.
Tail Days & Extremes: 2σ tail days (down/up): AMZN 7/3, GOOG 3/5. Worst day: AMZN -8.27% (2025-08-01) vs GOOG -7.51% (2025-05-07). Best day: AMZN +11.98% (2025-04-09) vs GOOG +9.88% (2025-04-09).
Risk ratios: Sortino - AMZN: 0.83 vs. GOOG: 3.90 , Calmar - AMZN: 0.83 vs. GOOG: 4.54 , Sterling - AMZN: 0.94 vs. GOOG: 4.34 , Treynor - AMZN: 0.14 vs. GOOG: 0.66 , Ulcer Index - AMZN: 8.91% vs. GOOG: 5.40%

Amazon vs Google Correlation

0.40 Average Correlation

Amazon and Google are moderately correlated over the past year. With a correlation of 0.40, these assets show moderate co-movement, offering some diversification when held together.

For portfolio construction, this moderate correlation offers some diversification benefit, though the assets still tend to move together during major market moves.

Metric	Value
Current (30-day)	0.70
Average (full period)	0.40
Minimum	0.07
Maximum	0.73

Correlation measures how closely two assets move together. Values near +1 indicate strong co-movement, near 0 indicates independence, and negative values indicate inverse movement.

Investment Comparison

If you invested $10,000 in each asset on April 3, 2025:

AMZN $11,802.59 +18.0%

GOOG $19,374.35 +93.7%

Difference: $7,571.76 (GOOG ahead)

Amazon and Google: Risk Analysis

Amazon experienced its maximum drawdown of -21.7% from 2025-11-03 to 2026-02-13. It has not yet recovered to its previous peak.

Google experienced its maximum drawdown of -20.8% from 2026-02-02 to 2026-03-30. It has not yet recovered to its previous peak.

Smaller drawdowns and faster recoveries indicate lower downside risk and greater resilience during market stress.

Sharpe Ratio of AMZN and GOOG

AMZN Sharpe Ratio

↑ 0.54

GOOG Sharpe Ratio

↑ 2.24

Sharpe ratio measures return per unit of risk (volatility). A higher Sharpe indicates better risk-adjusted performance. GOOG had a higher Sharpe (2.24 vs 0.54), indicating better risk-adjusted performance.

A Sharpe above 1.0 is generally considered good, above 2.0 is excellent. Negative Sharpe means the asset underperformed the risk-free rate. Calculated on each asset's full 365-day lookback of available prices and annualized using the asset calendar (365 for crypto, 252 trading days for equities/ETFs/metals).

Sortino Ratio of AMZN and GOOG

AMZN Sortino Ratio

↑ 0.83

GOOG Sortino Ratio

↑ 3.90

Sortino ratio measures return per unit of downside risk. Unlike Sharpe, it only counts downside deviation (returns below the target return). GOOG had better downside-adjusted returns.

A higher Sortino is better. It's useful when upside volatility is common (crypto is the obvious example). Downside deviation: AMZN 21.9% vs GOOG 17.2%. Calculated on each asset's full 365-day lookback of available prices, using the daily risk-free rate as the target return, and annualized using the asset calendar (365 for crypto, 252 trading days for equities/ETFs/metals).

Calmar Ratio of AMZN and GOOG

AMZN Calmar Ratio

↑ 0.83

GOOG Calmar Ratio

↑ 4.54

Calmar ratio compares CAGR to maximum drawdown. Higher Calmar means more return per unit of worst drawdown. GOOG posted the higher Calmar ratio.

Calmar is computed on each asset's full 365-day lookback and uses the max drawdown over that same window.

Sterling Ratio of AMZN and GOOG

AMZN Sterling Ratio

↑ 0.94

GOOG Sterling Ratio

↑ 4.34

Sterling ratio measures excess return per unit of average drawdown (typically drawdowns worse than 10%). GOOG posted the higher Sterling ratio.

Sterling uses average drawdown events deeper than 10% and subtracts the risk-free rate to report excess return.

Treynor Ratio of AMZN and GOOG

AMZN Treynor Ratio

↑ 0.14

GOOG Treynor Ratio

↑ 0.66

Treynor ratio measures excess return per unit of market risk (beta) instead of total volatility. GOOG posted the higher Treynor ratio.

Treynor uses beta vs the S&P 500 (SPY) on shared dates and the average 3-month Treasury rate as the risk-free rate.

Ulcer Index of AMZN and GOOG

AMZN Ulcer Index

8.91%

GOOG Ulcer Index

5.40%

Ulcer Index captures drawdown depth and duration. Lower Ulcer Index means less drawdown pain. GOOG had the lower Ulcer Index (less drawdown pain).

Ulcer Index is computed from each asset's drawdown series over the full lookback window.

Tail Risk & Distribution Shape (1-Year): Amazon vs. Google

This section looks at the shape of daily returns, not just the average. Tail stats are computed per asset on its own daily series (crypto includes weekends). We use daily log returns $\ln\left(\frac{P_t}{P_{t-1}}\right)$ so multi-day moves add cleanly.

Definitions: Value at Risk (VaR), Expected Shortfall, skew, kurtosis, and fat tails.

Metric (1-Year)	AMZN	GOOG
5% VaR (daily log return)	-3.09%	-2.33%
5% Expected Shortfall (CVaR)	-4.49% (worst 13 days)	-3.32% (worst 13 days)
Skew	0.60	0.64
Excess kurtosis	5.09	4.12
2σ tail days (down / up)	7 / 3	3 / 5
Worst day	-8.27% (2025-08-01)	-7.51% (2025-05-07)
Best day	+11.98% (2025-04-09)	+9.88% (2025-04-09)

Downside co-moves (2σ) — 1-Year

Computed on shared dates only (n=249). A “2σ downside move” means a shared-close log return more than 2 standard deviations below that asset’s own mean on this shared-date series. Dates below show simple returns (%) for readability.

When GOOG has a big down day, AMZN also does

33.3%

1 / 3 days

When AMZN has a big down day, GOOG also does

14.3%

1 / 7 days

Show downside tail dates

Dates below are shared-date observations. The “Date” is the period end (close). Tail thresholds are computed on log returns, but the table shows simple returns (%) for readability. Returns are computed from the previous shared close to this one (for example, Friday → Monday includes weekend moves).

Days when both AMZN and GOOG had a big down day (2σ)

Date (interval)	AMZN	GOOG
2025-04-10	-5.17%	-3.53%

Days when AMZN had a big down day

Date (interval)	AMZN	GOOG
2025-04-04	-4.15%	-3.20%
2025-04-10	-5.17%	-3.53%
2025-08-01	-8.27%	-1.51%
2025-10-10	-4.99%	-1.95%
2025-11-18	-4.43%	-0.22%
2026-02-05	-4.42%	-0.60%
2026-02-06	-5.55%	-2.48%

Days when GOOG had a big down day

Date (interval)	AMZN	GOOG
2025-04-10	-5.17%	-3.53%
2025-05-07	+2.00%	-7.51%
2025-06-18 → 2025-06-20	-1.33%	-3.59%

Read this as “how ugly the ugly days get”, not as a precise forecast. One-year samples are small, so tail estimates are inherently noisy.

Amazon vs Google Volatility (AMZN vs GOOG)

AMZN Volatility

33.9%

±2.14% daily

GOOG Volatility

30.0%

±1.89% daily

Typical daily swing

AMZN

±2.14%

GOOG

±1.89%

Amazon's annualized volatility of 33.9% means it typically moves ±2.14% on any given day.

Google's annualized volatility of 30.0% means it typically moves ±1.89% on any given day.

AMZN's higher volatility means a wider path to returns — this can be attractive for tactical, shorter-term exposure, while GOOG's smoother profile may better suit long-term allocators seeking steadier growth.

For comparison, the S&P 500 typically has 15-18% annualized volatility, translating to roughly ±1% daily moves. Higher volatility means larger potential gains but also larger potential losses.

Amazon vs Google Performance Over Time

Metric	AMZN	GOOG
30 Days	1%	-3.7%
90 Days	-8.8%	-6%
180 Days	-4.1%	19.7%
1 Year	18%	93.7%

Shorter time frames can show different leaders as market conditions change. Consider your investment horizon when comparing performance.

Full Comparison of Amazon vs. Google (1-Year)

Metric	AMZN	GOOG
Total Return	+18.0%	+93.7%
Annualized Volatility	33.9%	30.0%
Sharpe Ratio	0.54	2.24
Sortino Ratio	0.83	3.90
Calmar Ratio	0.83	4.54
Sterling Ratio	0.94	4.34
Treynor Ratio	0.14	0.66
Ulcer Index	8.91%	5.40%
Max Drawdown	-21.7%	-20.8%
Avg Correlation to S&P 500	0.59	0.50
5% VaR (daily log return)	-3.09%	-2.33%
5% Expected Shortfall (CVaR)	-4.49%	-3.32%
Skew	0.60	0.64
Excess kurtosis	5.09	4.12
2σ tail days (down / up)	7 / 3	3 / 5

Audit this calculation

Formulas, inputs, and conventions used to compute the metrics on this page.

Inputs & conventions

Shared window for pair metrics: 2025-04-03 → 2026-04-01 (last shared close).
Rolling correlation sample (shared closes): 220 rolling 30-day values (from 249 shared daily returns).
Annualization (days/year): AMZN: 252 days/year; GOOG: 252 days/year.
Risk-free rate: Uses the 3-month U.S. Treasury yield (FRED: DGS3MO), averaged over each asset’s window:

AMZN: 4.18% over 2025-04-03 → 2026-04-01.

GOOG: 4.18% over 2025-04-03 → 2026-04-01.
Volatility drag (rule of thumb): Estimated from annualized volatility (simple returns). For the log-return framing, see Log returns.

AMZN: ≈ -5.7%/yr

GOOG: ≈ -4.5%/yr
Data alignment: No forward fill. Correlation and tail co-moves are computed on shared closes only.
For cross-calendar pairs (e.g., crypto vs stocks), weekend/holiday moves roll into the next shared close.
Return conventions: Volatility/Sharpe/Sortino use simple daily returns. Tail-risk uses daily log returns for distribution stats (but tables show simple returns). Log returns.

Formulas

Daily simple return

r_t = \frac{P_t}{P_{t-1}} - 1

Volatility

\sigma_{ann} = \sigma(r_t)\sqrt{A}

Volatility drag (approx.)

\text{drag} \approx \tfrac{1}{2}\sigma_{ann}^2

Sharpe Ratio

S = \frac{A\,\bar{r} - r_f}{\sigma(r_t)\sqrt{A}}

Sortino Ratio

So = \frac{A\,\bar{r} - r_f}{\sqrt{\mathbb{E}[\min(0,\,r_t - r_f/A)^2]}\,\sqrt{A}}

Maximum Drawdown

MDD = \min_t\left(\frac{P_t}{\max_{s \le t} P_s} - 1\right)

Average Correlation

\rho = \frac{\operatorname{cov}(r^A,\,r^B)}{\sigma_A\,\sigma_B}

Log returns

\ell_t = \ln\left(\frac{P_t}{P_{t-1}}\right)

Notation

$P_t$: Price on day t.
$r_t$: Simple daily return.
$\ell_t$: Log daily return.
$\bar{r}$: Average daily return.
$\sigma(r_t)$: Standard deviation of daily returns.
$A$: Annualization factor (days/year).
$r_f$: Annual risk-free rate.

Amazon vs Google: Frequently Asked Questions

Which has higher volatility: AMZN or GOOG?

AMZN showed higher volatility at 33.9% annualized, compared to 30.0% for GOOG Over the past year. Higher volatility means larger price swings in both directions.

Does AMZN provide diversification when held with GOOG?

AMZN and GOOG are moderately correlated over the past year, with an average correlation of 0.40. This offers some diversification benefit, though they still tend to move together during major market moves.

How bad are the worst 5% days for AMZN vs GOOG?

Over the past year, AMZN's 5% VaR was -3.09% and its 5% Expected Shortfall was -4.49% (worst 13 days). GOOG's were -2.33% and -3.32% (worst 13 days).

Do AMZN and GOOG crash together on bad days?

On shared dates (n=249), when GOOG has a 2σ down day, AMZN also does 33.3% (1/3 days). In the other direction, when AMZN has one, GOOG also does 14.3% (1/7 days).

Which has better risk-adjusted returns: AMZN or GOOG?

GOOG showed better risk-adjusted performance with a Sharpe ratio of 2.24 versus AMZN's 0.54 Over the past year.

Can AMZN and GOOG be combined in a portfolio?

Yes, though allocation sizing matters. Their moderate correlation offers some diversification benefits. AMZN's higher volatility (33.9%) means even small allocations can materially impact overall portfolio risk.

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