Correlation Between Amkor Technology and VIRG NATL
Can any of the company-specific risk be diversified away by investing in both Amkor Technology and VIRG NATL 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 VIRG NATL into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Amkor Technology and VIRG NATL BANKSH, you can compare the effects of market volatilities on Amkor Technology and VIRG NATL 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 VIRG NATL. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amkor Technology and VIRG NATL.
Diversification Opportunities for Amkor Technology and VIRG NATL
-0.46 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Amkor and VIRG is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding Amkor Technology and VIRG NATL BANKSH in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on VIRG NATL BANKSH 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 VIRG NATL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of VIRG NATL BANKSH has no effect on the direction of Amkor Technology i.e., Amkor Technology and VIRG NATL go up and down completely randomly.
Pair Corralation between Amkor Technology and VIRG NATL
Assuming the 90 days horizon Amkor Technology is expected to generate 0.6 times more return on investment than VIRG NATL. However, Amkor Technology is 1.67 times less risky than VIRG NATL. It trades about 0.04 of its potential returns per unit of risk. VIRG NATL BANKSH is currently generating about 0.0 per unit of risk. If you would invest 2,410 in Amkor Technology on September 2, 2024 and sell it today you would earn a total of 40.00 from holding Amkor Technology or generate 1.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Amkor Technology vs. VIRG NATL BANKSH
Performance |
| Timeline |
| Amkor Technology |
| VIRG NATL BANKSH |
Amkor Technology and VIRG NATL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amkor Technology and VIRG NATL
The main advantage of trading using opposite Amkor Technology and VIRG NATL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amkor Technology position performs unexpectedly, VIRG NATL 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 VIRG NATL will offset losses from the drop in VIRG NATL's long position.The idea behind Amkor Technology and VIRG NATL BANKSH 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.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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
Other Complementary Tools
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments |