Correlation Between Amkor Technology and PANDORA
Can any of the company-specific risk be diversified away by investing in both Amkor Technology and PANDORA 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 PANDORA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Amkor Technology and PANDORA, you can compare the effects of market volatilities on Amkor Technology and PANDORA 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 PANDORA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amkor Technology and PANDORA.
Diversification Opportunities for Amkor Technology and PANDORA
0.05 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Amkor and PANDORA is 0.05. Overlapping area represents the amount of risk that can be diversified away by holding Amkor Technology and PANDORA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PANDORA 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 PANDORA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PANDORA has no effect on the direction of Amkor Technology i.e., Amkor Technology and PANDORA go up and down completely randomly.
Pair Corralation between Amkor Technology and PANDORA
Assuming the 90 days horizon Amkor Technology is expected to under-perform the PANDORA. In addition to that, Amkor Technology is 1.86 times more volatile than PANDORA. It trades about -0.08 of its total potential returns per unit of risk. PANDORA is currently generating about 0.3 per unit of volatility. If you would invest 14,385 in PANDORA on September 13, 2024 and sell it today you would earn a total of 2,555 from holding PANDORA or generate 17.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Amkor Technology vs. PANDORA
Performance |
| Timeline |
| Amkor Technology |
| PANDORA |
Amkor Technology and PANDORA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amkor Technology and PANDORA
The main advantage of trading using opposite Amkor Technology and PANDORA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amkor Technology position performs unexpectedly, PANDORA 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 PANDORA will offset losses from the drop in PANDORA's long position.| Amkor Technology vs. Taiwan Semiconductor Manufacturing | Amkor Technology vs. Broadcom | Amkor Technology vs. Superior Plus Corp | Amkor Technology vs. SIVERS SEMICONDUCTORS AB |
| PANDORA vs. Aedas Homes SA | PANDORA vs. BRIT AMER TOBACCO | PANDORA vs. Align Technology | PANDORA vs. Amkor Technology |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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