Correlation Between NURAN WIRELESS and Amkor Technology
Can any of the company-specific risk be diversified away by investing in both NURAN WIRELESS and Amkor Technology 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 NURAN WIRELESS and Amkor Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NURAN WIRELESS INC and Amkor Technology, you can compare the effects of market volatilities on NURAN WIRELESS and Amkor Technology 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 NURAN WIRELESS with a short position of Amkor Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of NURAN WIRELESS and Amkor Technology.
Diversification Opportunities for NURAN WIRELESS and Amkor Technology
0.42 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between NURAN and Amkor is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding NURAN WIRELESS INC and Amkor Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amkor Technology and NURAN WIRELESS 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 NURAN WIRELESS INC are associated (or correlated) with Amkor Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amkor Technology has no effect on the direction of NURAN WIRELESS i.e., NURAN WIRELESS and Amkor Technology go up and down completely randomly.
Pair Corralation between NURAN WIRELESS and Amkor Technology
Assuming the 90 days trading horizon NURAN WIRELESS INC is expected to under-perform the Amkor Technology. In addition to that, NURAN WIRELESS is 2.74 times more volatile than Amkor Technology. It trades about -0.12 of its total potential returns per unit of risk. Amkor Technology is currently generating about 0.01 per unit of volatility. If you would invest 2,512 in Amkor Technology on October 15, 2024 and sell it today you would earn a total of 1.00 from holding Amkor Technology or generate 0.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
NURAN WIRELESS INC vs. Amkor Technology
Performance |
| Timeline |
| NURAN WIRELESS INC |
| Amkor Technology |
NURAN WIRELESS and Amkor Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with NURAN WIRELESS and Amkor Technology
The main advantage of trading using opposite NURAN WIRELESS and Amkor Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NURAN WIRELESS position performs unexpectedly, Amkor Technology 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 Amkor Technology will offset losses from the drop in Amkor Technology's long position.| NURAN WIRELESS vs. CSSC Offshore Marine | NURAN WIRELESS vs. JLF INVESTMENT | NURAN WIRELESS vs. Gladstone Investment | NURAN WIRELESS vs. PT Wintermar Offshore |
| Amkor Technology vs. WT OFFSHORE | Amkor Technology vs. Nanjing Panda Electronics | Amkor Technology vs. ARROW ELECTRONICS | Amkor Technology vs. Meiko Electronics Co |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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