Correlation Between Amkor Technology and GAZTRTECHNIUADR15EO01
Can any of the company-specific risk be diversified away by investing in both Amkor Technology and GAZTRTECHNIUADR15EO01 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 GAZTRTECHNIUADR15EO01 into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Amkor Technology and GAZTRTECHNIUADR15EO01, you can compare the effects of market volatilities on Amkor Technology and GAZTRTECHNIUADR15EO01 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 GAZTRTECHNIUADR15EO01. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amkor Technology and GAZTRTECHNIUADR15EO01.
Diversification Opportunities for Amkor Technology and GAZTRTECHNIUADR15EO01
-0.23 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Amkor and GAZTRTECHNIUADR15EO01 is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding Amkor Technology and GAZTRTECHNIUADR15EO01 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GAZTRTECHNIUADR15EO01 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 GAZTRTECHNIUADR15EO01. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GAZTRTECHNIUADR15EO01 has no effect on the direction of Amkor Technology i.e., Amkor Technology and GAZTRTECHNIUADR15EO01 go up and down completely randomly.
Pair Corralation between Amkor Technology and GAZTRTECHNIUADR15EO01
Assuming the 90 days horizon Amkor Technology is expected to generate 4.99 times less return on investment than GAZTRTECHNIUADR15EO01. But when comparing it to its historical volatility, Amkor Technology is 1.48 times less risky than GAZTRTECHNIUADR15EO01. It trades about 0.1 of its potential returns per unit of risk. GAZTRTECHNIUADR15EO01 is currently generating about 0.34 of returns per unit of risk over similar time horizon. If you would invest 2,520 in GAZTRTECHNIUADR15EO01 on October 25, 2024 and sell it today you would earn a total of 320.00 from holding GAZTRTECHNIUADR15EO01 or generate 12.7% 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. GAZTRTECHNIUADR15EO01
Performance |
| Timeline |
| Amkor Technology |
| GAZTRTECHNIUADR15EO01 |
Amkor Technology and GAZTRTECHNIUADR15EO01 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amkor Technology and GAZTRTECHNIUADR15EO01
The main advantage of trading using opposite Amkor Technology and GAZTRTECHNIUADR15EO01 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amkor Technology position performs unexpectedly, GAZTRTECHNIUADR15EO01 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 GAZTRTECHNIUADR15EO01 will offset losses from the drop in GAZTRTECHNIUADR15EO01's long position.| Amkor Technology vs. NVIDIA | Amkor Technology vs. Taiwan Semiconductor Manufacturing | Amkor Technology vs. Broadcom | Amkor Technology vs. QUALCOMM Incorporated |
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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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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