Correlation Between AXWAY SOFTWARE and Amkor Technology
Can any of the company-specific risk be diversified away by investing in both AXWAY SOFTWARE 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 AXWAY SOFTWARE and Amkor Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AXWAY SOFTWARE EO and Amkor Technology, you can compare the effects of market volatilities on AXWAY SOFTWARE 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 AXWAY SOFTWARE with a short position of Amkor Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of AXWAY SOFTWARE and Amkor Technology.
Diversification Opportunities for AXWAY SOFTWARE and Amkor Technology
-0.76 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between AXWAY and Amkor is -0.76. Overlapping area represents the amount of risk that can be diversified away by holding AXWAY SOFTWARE EO and Amkor Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amkor Technology and AXWAY SOFTWARE 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 AXWAY SOFTWARE EO 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 AXWAY SOFTWARE i.e., AXWAY SOFTWARE and Amkor Technology go up and down completely randomly.
Pair Corralation between AXWAY SOFTWARE and Amkor Technology
Assuming the 90 days horizon AXWAY SOFTWARE EO is expected to under-perform the Amkor Technology. But the stock apears to be less risky and, when comparing its historical volatility, AXWAY SOFTWARE EO is 2.81 times less risky than Amkor Technology. The stock trades about -0.06 of its potential returns per unit of risk. The Amkor Technology is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 2,442 in Amkor Technology on September 1, 2024 and sell it today you would earn a total of 13.00 from holding Amkor Technology or generate 0.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
AXWAY SOFTWARE EO vs. Amkor Technology
Performance |
| Timeline |
| AXWAY SOFTWARE EO |
| Amkor Technology |
AXWAY SOFTWARE and Amkor Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AXWAY SOFTWARE and Amkor Technology
The main advantage of trading using opposite AXWAY SOFTWARE and Amkor Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AXWAY SOFTWARE 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.| AXWAY SOFTWARE vs. The Hanover Insurance | AXWAY SOFTWARE vs. Regions Financial | AXWAY SOFTWARE vs. NEWELL RUBBERMAID | AXWAY SOFTWARE vs. OAKTRSPECLENDNEW |
| Amkor Technology vs. NVIDIA | Amkor Technology vs. Taiwan Semiconductor Manufacturing | Amkor Technology vs. Intel |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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