Correlation Between Amkor Technology and USWE SPORTS
Can any of the company-specific risk be diversified away by investing in both Amkor Technology and USWE SPORTS 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 USWE SPORTS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Amkor Technology and USWE SPORTS AB, you can compare the effects of market volatilities on Amkor Technology and USWE SPORTS 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 USWE SPORTS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amkor Technology and USWE SPORTS.
Diversification Opportunities for Amkor Technology and USWE SPORTS
-0.76 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Amkor and USWE is -0.76. Overlapping area represents the amount of risk that can be diversified away by holding Amkor Technology and USWE SPORTS AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on USWE SPORTS AB 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 USWE SPORTS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of USWE SPORTS AB has no effect on the direction of Amkor Technology i.e., Amkor Technology and USWE SPORTS go up and down completely randomly.
Pair Corralation between Amkor Technology and USWE SPORTS
Assuming the 90 days horizon Amkor Technology is expected to under-perform the USWE SPORTS. But the stock apears to be less risky and, when comparing its historical volatility, Amkor Technology is 1.64 times less risky than USWE SPORTS. The stock trades about -0.11 of its potential returns per unit of risk. The USWE SPORTS AB is currently generating about 0.26 of returns per unit of risk over similar time horizon. If you would invest 60.00 in USWE SPORTS AB on August 29, 2024 and sell it today you would earn a total of 16.00 from holding USWE SPORTS AB or generate 26.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Amkor Technology vs. USWE SPORTS AB
Performance |
| Timeline |
| Amkor Technology |
| USWE SPORTS AB |
Amkor Technology and USWE SPORTS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amkor Technology and USWE SPORTS
The main advantage of trading using opposite Amkor Technology and USWE SPORTS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amkor Technology position performs unexpectedly, USWE SPORTS 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 USWE SPORTS will offset losses from the drop in USWE SPORTS's long position.| Amkor Technology vs. NVIDIA | Amkor Technology vs. NVIDIA | Amkor Technology vs. QUALCOMM Incorporated | Amkor Technology vs. Intel |
| USWE SPORTS vs. NORDHEALTH AS NK | USWE SPORTS vs. Check Point Software | USWE SPORTS vs. Casio Computer CoLtd | USWE SPORTS 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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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