Correlation Between PKSHA TECHNOLOGY and Amkor Technology
Can any of the company-specific risk be diversified away by investing in both PKSHA TECHNOLOGY 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 PKSHA TECHNOLOGY and Amkor Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PKSHA TECHNOLOGY INC and Amkor Technology, you can compare the effects of market volatilities on PKSHA TECHNOLOGY 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 PKSHA TECHNOLOGY with a short position of Amkor Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of PKSHA TECHNOLOGY and Amkor Technology.
Diversification Opportunities for PKSHA TECHNOLOGY and Amkor Technology
-0.57 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between PKSHA and Amkor is -0.57. Overlapping area represents the amount of risk that can be diversified away by holding PKSHA TECHNOLOGY INC and Amkor Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amkor Technology and PKSHA TECHNOLOGY 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 PKSHA TECHNOLOGY 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 PKSHA TECHNOLOGY i.e., PKSHA TECHNOLOGY and Amkor Technology go up and down completely randomly.
Pair Corralation between PKSHA TECHNOLOGY and Amkor Technology
Assuming the 90 days horizon PKSHA TECHNOLOGY INC is expected to generate 1.19 times more return on investment than Amkor Technology. However, PKSHA TECHNOLOGY is 1.19 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 0.01 per unit of risk. If you would invest 1,840 in PKSHA TECHNOLOGY INC on August 25, 2024 and sell it today you would earn a total of 320.00 from holding PKSHA TECHNOLOGY INC or generate 17.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
PKSHA TECHNOLOGY INC vs. Amkor Technology
Performance |
| Timeline |
| PKSHA TECHNOLOGY INC |
| Amkor Technology |
PKSHA TECHNOLOGY and Amkor Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PKSHA TECHNOLOGY and Amkor Technology
The main advantage of trading using opposite PKSHA TECHNOLOGY and Amkor Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PKSHA TECHNOLOGY 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.| PKSHA TECHNOLOGY vs. Microsoft | PKSHA TECHNOLOGY vs. Adobe Inc | PKSHA TECHNOLOGY vs. ADYEN NV UNSPADR001 |
| Amkor Technology vs. NVIDIA | Amkor Technology vs. NVIDIA | Amkor Technology vs. QUALCOMM Incorporated | Amkor Technology vs. Advanced Micro Devices |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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