Correlation Between PT Ace and Amkor Technology
Can any of the company-specific risk be diversified away by investing in both PT Ace 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 PT Ace and Amkor Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PT Ace Hardware and Amkor Technology, you can compare the effects of market volatilities on PT Ace 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 PT Ace with a short position of Amkor Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of PT Ace and Amkor Technology.
Diversification Opportunities for PT Ace and Amkor Technology
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between 4AH1 and Amkor is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding PT Ace Hardware and Amkor Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amkor Technology and PT Ace 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 PT Ace Hardware 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 PT Ace i.e., PT Ace and Amkor Technology go up and down completely randomly.
Pair Corralation between PT Ace and Amkor Technology
Assuming the 90 days trading horizon PT Ace Hardware is expected to generate 3.93 times more return on investment than Amkor Technology. However, PT Ace is 3.93 times more volatile than Amkor Technology. It trades about 0.03 of its potential returns per unit of risk. Amkor Technology is currently generating about -0.1 per unit of risk. If you would invest 3.95 in PT Ace Hardware on September 24, 2024 and sell it today you would earn a total of 0.00 from holding PT Ace Hardware or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
PT Ace Hardware vs. Amkor Technology
Performance |
| Timeline |
| PT Ace Hardware |
| Amkor Technology |
PT Ace and Amkor Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PT Ace and Amkor Technology
The main advantage of trading using opposite PT Ace and Amkor Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PT Ace 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.| PT Ace vs. Compugroup Medical SE | PT Ace vs. Solstad Offshore ASA | PT Ace vs. MeVis Medical Solutions | PT Ace vs. ONWARD MEDICAL BV |
| Amkor Technology vs. NVIDIA | Amkor Technology vs. Taiwan Semiconductor Manufacturing | Amkor Technology vs. Broadcom | Amkor Technology vs. Texas Instruments Incorporated |
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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
Other Complementary Tools
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk |