Correlation Between Amkor Technology and MOVIE GAMES
Can any of the company-specific risk be diversified away by investing in both Amkor Technology and MOVIE GAMES 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 MOVIE GAMES into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Amkor Technology and MOVIE GAMES SA, you can compare the effects of market volatilities on Amkor Technology and MOVIE GAMES 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 MOVIE GAMES. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amkor Technology and MOVIE GAMES.
Diversification Opportunities for Amkor Technology and MOVIE GAMES
0.58 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Amkor and MOVIE is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding Amkor Technology and MOVIE GAMES SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MOVIE GAMES SA 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 MOVIE GAMES. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MOVIE GAMES SA has no effect on the direction of Amkor Technology i.e., Amkor Technology and MOVIE GAMES go up and down completely randomly.
Pair Corralation between Amkor Technology and MOVIE GAMES
Assuming the 90 days horizon Amkor Technology is expected to generate 1.01 times more return on investment than MOVIE GAMES. However, Amkor Technology is 1.01 times more volatile than MOVIE GAMES SA. It trades about -0.03 of its potential returns per unit of risk. MOVIE GAMES SA is currently generating about -0.13 per unit of risk. If you would invest 2,982 in Amkor Technology on September 1, 2024 and sell it today you would lose (527.00) from holding Amkor Technology or give up 17.67% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Amkor Technology vs. MOVIE GAMES SA
Performance |
| Timeline |
| Amkor Technology |
| MOVIE GAMES SA |
Amkor Technology and MOVIE GAMES Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amkor Technology and MOVIE GAMES
The main advantage of trading using opposite Amkor Technology and MOVIE GAMES positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amkor Technology position performs unexpectedly, MOVIE GAMES 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 MOVIE GAMES will offset losses from the drop in MOVIE GAMES's long position.The idea behind Amkor Technology and MOVIE GAMES SA pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| MOVIE GAMES vs. UNITED RENTALS | MOVIE GAMES vs. Ribbon Communications | MOVIE GAMES vs. Madison Square Garden | MOVIE GAMES vs. United Rentals |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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