Correlation Between GAZTRTECHNIUADR15EO01 and Amkor Technology
Can any of the company-specific risk be diversified away by investing in both GAZTRTECHNIUADR15EO01 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 GAZTRTECHNIUADR15EO01 and Amkor Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GAZTRTECHNIUADR15EO01 and Amkor Technology, you can compare the effects of market volatilities on GAZTRTECHNIUADR15EO01 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 GAZTRTECHNIUADR15EO01 with a short position of Amkor Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of GAZTRTECHNIUADR15EO01 and Amkor Technology.
Diversification Opportunities for GAZTRTECHNIUADR15EO01 and Amkor Technology
-0.23 | Correlation Coefficient |
Very good diversification
The 3 months correlation between GAZTRTECHNIUADR15EO01 and Amkor is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding GAZTRTECHNIUADR15EO01 and Amkor Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amkor Technology and GAZTRTECHNIUADR15EO01 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 GAZTRTECHNIUADR15EO01 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 GAZTRTECHNIUADR15EO01 i.e., GAZTRTECHNIUADR15EO01 and Amkor Technology go up and down completely randomly.
Pair Corralation between GAZTRTECHNIUADR15EO01 and Amkor Technology
Assuming the 90 days trading horizon GAZTRTECHNIUADR15EO01 is expected to generate 1.48 times more return on investment than Amkor Technology. However, GAZTRTECHNIUADR15EO01 is 1.48 times more volatile than Amkor Technology. It trades about 0.34 of its potential returns per unit of risk. Amkor Technology is currently generating about 0.1 per unit of risk. If you would invest 2,520 in GAZTRTECHNIUADR15EO01 on October 25, 2024 and sell it today you would earn a total of 320.00 from holding GAZTRTECHNIUADR15EO01 or generate 12.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
GAZTRTECHNIUADR15EO01 vs. Amkor Technology
Performance |
| Timeline |
| GAZTRTECHNIUADR15EO01 |
| Amkor Technology |
GAZTRTECHNIUADR15EO01 and Amkor Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GAZTRTECHNIUADR15EO01 and Amkor Technology
The main advantage of trading using opposite GAZTRTECHNIUADR15EO01 and Amkor Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GAZTRTECHNIUADR15EO01 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.| GAZTRTECHNIUADR15EO01 vs. Apple Inc | GAZTRTECHNIUADR15EO01 vs. Apple Inc | GAZTRTECHNIUADR15EO01 vs. Apple Inc | GAZTRTECHNIUADR15EO01 vs. Apple Inc |
| Amkor Technology vs. NVIDIA | Amkor Technology vs. Taiwan Semiconductor Manufacturing | Amkor Technology vs. Broadcom | Amkor Technology vs. QUALCOMM 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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
Other Complementary Tools
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios |