Correlation Between Amkor Technology and Japan Post
Can any of the company-specific risk be diversified away by investing in both Amkor Technology and Japan Post 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 Japan Post into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Amkor Technology and Japan Post Insurance, you can compare the effects of market volatilities on Amkor Technology and Japan Post 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 Japan Post. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amkor Technology and Japan Post.
Diversification Opportunities for Amkor Technology and Japan Post
-0.15 | Correlation Coefficient |
Good diversification
The 3 months correlation between Amkor and Japan is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding Amkor Technology and Japan Post Insurance in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Japan Post Insurance 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 Japan Post. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Japan Post Insurance has no effect on the direction of Amkor Technology i.e., Amkor Technology and Japan Post go up and down completely randomly.
Pair Corralation between Amkor Technology and Japan Post
Assuming the 90 days horizon Amkor Technology is expected to under-perform the Japan Post. In addition to that, Amkor Technology is 1.16 times more volatile than Japan Post Insurance. It trades about -0.09 of its total potential returns per unit of risk. Japan Post Insurance is currently generating about 0.23 per unit of volatility. If you would invest 1,560 in Japan Post Insurance on August 28, 2024 and sell it today you would earn a total of 350.00 from holding Japan Post Insurance or generate 22.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Amkor Technology vs. Japan Post Insurance
Performance |
| Timeline |
| Amkor Technology |
| Japan Post Insurance |
Amkor Technology and Japan Post Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amkor Technology and Japan Post
The main advantage of trading using opposite Amkor Technology and Japan Post positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amkor Technology position performs unexpectedly, Japan Post 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 Japan Post will offset losses from the drop in Japan Post's long position.| Amkor Technology vs. NVIDIA | Amkor Technology vs. NVIDIA | Amkor Technology vs. QUALCOMM Incorporated | Amkor Technology vs. Intel |
| Japan Post vs. CONAGRA FOODS | Japan Post vs. Dairy Farm International | Japan Post vs. Mitsui Chemicals | Japan Post vs. CHEMICAL INDUSTRIES |
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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
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