Correlation Between Amkor Technology and Bolsa Mexicana
Can any of the company-specific risk be diversified away by investing in both Amkor Technology and Bolsa Mexicana 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 Bolsa Mexicana into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Amkor Technology and Bolsa Mexicana de, you can compare the effects of market volatilities on Amkor Technology and Bolsa Mexicana 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 Bolsa Mexicana. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amkor Technology and Bolsa Mexicana.
Diversification Opportunities for Amkor Technology and Bolsa Mexicana
0.23 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Amkor and Bolsa is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding Amkor Technology and Bolsa Mexicana de in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bolsa Mexicana de 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 Bolsa Mexicana. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bolsa Mexicana de has no effect on the direction of Amkor Technology i.e., Amkor Technology and Bolsa Mexicana go up and down completely randomly.
Pair Corralation between Amkor Technology and Bolsa Mexicana
Assuming the 90 days horizon Amkor Technology is expected to generate 0.47 times more return on investment than Bolsa Mexicana. However, Amkor Technology is 2.11 times less risky than Bolsa Mexicana. It trades about 0.1 of its potential returns per unit of risk. Bolsa Mexicana de is currently generating about -0.05 per unit of risk. If you would invest 2,520 in Amkor Technology on October 25, 2024 and sell it today you would earn a total of 59.00 from holding Amkor Technology or generate 2.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 94.44% |
| Values | Daily Returns |
Amkor Technology vs. Bolsa Mexicana de
Performance |
| Timeline |
| Amkor Technology |
| Bolsa Mexicana de |
Amkor Technology and Bolsa Mexicana Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amkor Technology and Bolsa Mexicana
The main advantage of trading using opposite Amkor Technology and Bolsa Mexicana positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amkor Technology position performs unexpectedly, Bolsa Mexicana 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 Bolsa Mexicana will offset losses from the drop in Bolsa Mexicana'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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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