Correlation Between Amkor Technology and Avis Budget
Can any of the company-specific risk be diversified away by investing in both Amkor Technology and Avis Budget 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 Avis Budget into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Amkor Technology and Avis Budget Group, you can compare the effects of market volatilities on Amkor Technology and Avis Budget 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 Avis Budget. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amkor Technology and Avis Budget.
Diversification Opportunities for Amkor Technology and Avis Budget
-0.6 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Amkor and Avis is -0.6. Overlapping area represents the amount of risk that can be diversified away by holding Amkor Technology and Avis Budget Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Avis Budget Group 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 Avis Budget. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Avis Budget Group has no effect on the direction of Amkor Technology i.e., Amkor Technology and Avis Budget go up and down completely randomly.
Pair Corralation between Amkor Technology and Avis Budget
Assuming the 90 days horizon Amkor Technology is expected to generate 0.97 times more return on investment than Avis Budget. However, Amkor Technology is 1.04 times less risky than Avis Budget. It trades about 0.01 of its potential returns per unit of risk. Avis Budget Group is currently generating about -0.01 per unit of risk. If you would invest 2,504 in Amkor Technology on September 3, 2024 and sell it today you would lose (54.00) from holding Amkor Technology or give up 2.16% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Amkor Technology vs. Avis Budget Group
Performance |
| Timeline |
| Amkor Technology |
| Avis Budget Group |
Amkor Technology and Avis Budget Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amkor Technology and Avis Budget
The main advantage of trading using opposite Amkor Technology and Avis Budget positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amkor Technology position performs unexpectedly, Avis Budget 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 Avis Budget will offset losses from the drop in Avis Budget's long position.| Amkor Technology vs. NVIDIA | Amkor Technology vs. Taiwan Semiconductor Manufacturing | Amkor Technology vs. Advanced Micro Devices | Amkor Technology vs. Intel |
| Avis Budget vs. ARDAGH METAL PACDL 0001 | Avis Budget vs. Amkor Technology | Avis Budget vs. Ming Le Sports | Avis Budget vs. SCOTT 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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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