Correlation Between Amkor Technology and FEMALE HEALTH
Can any of the company-specific risk be diversified away by investing in both Amkor Technology and FEMALE HEALTH 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 FEMALE HEALTH into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Amkor Technology and FEMALE HEALTH, you can compare the effects of market volatilities on Amkor Technology and FEMALE HEALTH 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 FEMALE HEALTH. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amkor Technology and FEMALE HEALTH.
Diversification Opportunities for Amkor Technology and FEMALE HEALTH
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Amkor and FEMALE is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding Amkor Technology and FEMALE HEALTH in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FEMALE HEALTH 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 FEMALE HEALTH. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FEMALE HEALTH has no effect on the direction of Amkor Technology i.e., Amkor Technology and FEMALE HEALTH go up and down completely randomly.
Pair Corralation between Amkor Technology and FEMALE HEALTH
Assuming the 90 days horizon Amkor Technology is expected to generate 0.56 times more return on investment than FEMALE HEALTH. However, Amkor Technology is 1.79 times less risky than FEMALE HEALTH. It trades about 0.02 of its potential returns per unit of risk. FEMALE HEALTH is currently generating about 0.01 per unit of risk. If you would invest 2,407 in Amkor Technology on August 31, 2024 and sell it today you would earn a total of 48.00 from holding Amkor Technology or generate 1.99% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.74% |
| Values | Daily Returns |
Amkor Technology vs. FEMALE HEALTH
Performance |
| Timeline |
| Amkor Technology |
| FEMALE HEALTH |
Amkor Technology and FEMALE HEALTH Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amkor Technology and FEMALE HEALTH
The main advantage of trading using opposite Amkor Technology and FEMALE HEALTH positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amkor Technology position performs unexpectedly, FEMALE HEALTH 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 FEMALE HEALTH will offset losses from the drop in FEMALE HEALTH's long position.| Amkor Technology vs. NVIDIA | Amkor Technology vs. Taiwan Semiconductor Manufacturing | Amkor Technology vs. Intel |
| FEMALE HEALTH vs. Nok Airlines PCL | FEMALE HEALTH vs. Seven West Media | FEMALE HEALTH vs. PARKEN Sport Entertainment | FEMALE HEALTH vs. SINGAPORE AIRLINES |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments |