Correlation Between Amkor Technology and VARIOUS EATERIES
Can any of the company-specific risk be diversified away by investing in both Amkor Technology and VARIOUS EATERIES 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 VARIOUS EATERIES into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Amkor Technology and VARIOUS EATERIES LS, you can compare the effects of market volatilities on Amkor Technology and VARIOUS EATERIES 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 VARIOUS EATERIES. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amkor Technology and VARIOUS EATERIES.
Diversification Opportunities for Amkor Technology and VARIOUS EATERIES
-0.28 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Amkor and VARIOUS is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding Amkor Technology and VARIOUS EATERIES LS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on VARIOUS EATERIES 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 VARIOUS EATERIES. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of VARIOUS EATERIES has no effect on the direction of Amkor Technology i.e., Amkor Technology and VARIOUS EATERIES go up and down completely randomly.
Pair Corralation between Amkor Technology and VARIOUS EATERIES
Assuming the 90 days horizon Amkor Technology is expected to under-perform the VARIOUS EATERIES. In addition to that, Amkor Technology is 1.84 times more volatile than VARIOUS EATERIES LS. It trades about -0.07 of its total potential returns per unit of risk. VARIOUS EATERIES LS is currently generating about 0.06 per unit of volatility. If you would invest 20.00 in VARIOUS EATERIES LS on August 29, 2024 and sell it today you would earn a total of 1.00 from holding VARIOUS EATERIES LS or generate 5.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 98.46% |
| Values | Daily Returns |
Amkor Technology vs. VARIOUS EATERIES LS
Performance |
| Timeline |
| Amkor Technology |
| VARIOUS EATERIES |
Amkor Technology and VARIOUS EATERIES Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amkor Technology and VARIOUS EATERIES
The main advantage of trading using opposite Amkor Technology and VARIOUS EATERIES positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amkor Technology position performs unexpectedly, VARIOUS EATERIES 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 VARIOUS EATERIES will offset losses from the drop in VARIOUS EATERIES's long position.| Amkor Technology vs. NVIDIA | Amkor Technology vs. Taiwan Semiconductor Manufacturing | Amkor Technology vs. Texas Instruments Incorporated | Amkor Technology vs. Advanced Micro Devices |
| VARIOUS EATERIES vs. STRAYER EDUCATION | VARIOUS EATERIES vs. GAMING FAC SA | VARIOUS EATERIES vs. GigaMedia | VARIOUS EATERIES vs. TAL Education Group |
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 Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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