Correlation Between Amkor Technology and SOFTBANK CORP
Can any of the company-specific risk be diversified away by investing in both Amkor Technology and SOFTBANK CORP 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 SOFTBANK CORP into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Amkor Technology and SOFTBANK P ADR, you can compare the effects of market volatilities on Amkor Technology and SOFTBANK CORP 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 SOFTBANK CORP. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amkor Technology and SOFTBANK CORP.
Diversification Opportunities for Amkor Technology and SOFTBANK CORP
0.06 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Amkor and SOFTBANK is 0.06. Overlapping area represents the amount of risk that can be diversified away by holding Amkor Technology and SOFTBANK P ADR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SOFTBANK P ADR 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 SOFTBANK CORP. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SOFTBANK P ADR has no effect on the direction of Amkor Technology i.e., Amkor Technology and SOFTBANK CORP go up and down completely randomly.
Pair Corralation between Amkor Technology and SOFTBANK CORP
If you would invest 2,620 in Amkor Technology on September 4, 2024 and sell it today you would lose (170.00) from holding Amkor Technology or give up 6.49% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Amkor Technology vs. SOFTBANK P ADR
Performance |
| Timeline |
| Amkor Technology |
| SOFTBANK P ADR |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Amkor Technology and SOFTBANK CORP Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amkor Technology and SOFTBANK CORP
The main advantage of trading using opposite Amkor Technology and SOFTBANK CORP positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amkor Technology position performs unexpectedly, SOFTBANK CORP 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 SOFTBANK CORP will offset losses from the drop in SOFTBANK CORP's long position.| Amkor Technology vs. NVIDIA | Amkor Technology vs. Taiwan Semiconductor Manufacturing | Amkor Technology vs. Advanced Micro Devices | Amkor Technology vs. Intel |
| SOFTBANK CORP vs. Siamgas And Petrochemicals | SOFTBANK CORP vs. Lion One Metals | SOFTBANK CORP vs. PTT Global Chemical | SOFTBANK CORP vs. Westlake Chemical |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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