Correlation Between Amkor Technology and Yuexiu Transport
Can any of the company-specific risk be diversified away by investing in both Amkor Technology and Yuexiu Transport 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 Yuexiu Transport into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Amkor Technology and Yuexiu Transport Infrastructure, you can compare the effects of market volatilities on Amkor Technology and Yuexiu Transport 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 Yuexiu Transport. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amkor Technology and Yuexiu Transport.
Diversification Opportunities for Amkor Technology and Yuexiu Transport
-0.82 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Amkor and Yuexiu is -0.82. Overlapping area represents the amount of risk that can be diversified away by holding Amkor Technology and Yuexiu Transport Infrastructur in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yuexiu Transport Inf 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 Yuexiu Transport. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Yuexiu Transport Inf has no effect on the direction of Amkor Technology i.e., Amkor Technology and Yuexiu Transport go up and down completely randomly.
Pair Corralation between Amkor Technology and Yuexiu Transport
Assuming the 90 days horizon Amkor Technology is expected to under-perform the Yuexiu Transport. In addition to that, Amkor Technology is 2.67 times more volatile than Yuexiu Transport Infrastructure. It trades about -0.1 of its total potential returns per unit of risk. Yuexiu Transport Infrastructure is currently generating about 0.32 per unit of volatility. If you would invest 43.00 in Yuexiu Transport Infrastructure on September 24, 2024 and sell it today you would earn a total of 2.00 from holding Yuexiu Transport Infrastructure or generate 4.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Amkor Technology vs. Yuexiu Transport Infrastructur
Performance |
| Timeline |
| Amkor Technology |
| Yuexiu Transport Inf |
Amkor Technology and Yuexiu Transport Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amkor Technology and Yuexiu Transport
The main advantage of trading using opposite Amkor Technology and Yuexiu Transport positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amkor Technology position performs unexpectedly, Yuexiu Transport 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 Yuexiu Transport will offset losses from the drop in Yuexiu Transport's long position.| Amkor Technology vs. NVIDIA | Amkor Technology vs. Taiwan Semiconductor Manufacturing | Amkor Technology vs. Broadcom | Amkor Technology vs. Texas Instruments Incorporated |
| Yuexiu Transport vs. Transurban Group | Yuexiu Transport vs. Jiangsu Expressway | Yuexiu Transport vs. Zhejiang Expressway Co | Yuexiu Transport vs. Arcosa Inc |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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