Correlation Between Amkor Technology and AXWAY SOFTWARE
Can any of the company-specific risk be diversified away by investing in both Amkor Technology and AXWAY SOFTWARE 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 Amkor Technology and AXWAY SOFTWARE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Amkor Technology and AXWAY SOFTWARE EO, you can compare the effects of market volatilities on Amkor Technology and AXWAY SOFTWARE 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 Amkor Technology with a short position of AXWAY SOFTWARE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amkor Technology and AXWAY SOFTWARE.
Diversification Opportunities for Amkor Technology and AXWAY SOFTWARE
-0.45 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Amkor and AXWAY is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding Amkor Technology and AXWAY SOFTWARE EO in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AXWAY SOFTWARE EO and Amkor 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 Amkor Technology are associated (or correlated) with AXWAY SOFTWARE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AXWAY SOFTWARE EO has no effect on the direction of Amkor Technology i.e., Amkor Technology and AXWAY SOFTWARE go up and down completely randomly.
Pair Corralation between Amkor Technology and AXWAY SOFTWARE
Assuming the 90 days horizon Amkor Technology is expected to under-perform the AXWAY SOFTWARE. In addition to that, Amkor Technology is 2.12 times more volatile than AXWAY SOFTWARE EO. It trades about -0.11 of its total potential returns per unit of risk. AXWAY SOFTWARE EO is currently generating about 0.09 per unit of volatility. If you would invest 2,670 in AXWAY SOFTWARE EO on November 30, 2024 and sell it today you would earn a total of 110.00 from holding AXWAY SOFTWARE EO or generate 4.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Amkor Technology vs. AXWAY SOFTWARE EO
Performance |
| Timeline |
| Amkor Technology |
| AXWAY SOFTWARE EO |
Amkor Technology and AXWAY SOFTWARE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amkor Technology and AXWAY SOFTWARE
The main advantage of trading using opposite Amkor Technology and AXWAY SOFTWARE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amkor Technology position performs unexpectedly, AXWAY SOFTWARE 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 AXWAY SOFTWARE will offset losses from the drop in AXWAY SOFTWARE's long position.| Amkor Technology vs. HK Electric Investments | Amkor Technology vs. MidCap Financial Investment | Amkor Technology vs. Aya Gold Silver | Amkor Technology vs. New Residential Investment |
| AXWAY SOFTWARE vs. MeVis Medical Solutions | AXWAY SOFTWARE vs. Renesas Electronics | AXWAY SOFTWARE vs. Methode Electronics | AXWAY SOFTWARE vs. ARROW ELECTRONICS |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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