Correlation Between Amkor Technology and Nintendo
Can any of the company-specific risk be diversified away by investing in both Amkor Technology and Nintendo 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 Nintendo into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Amkor Technology and Nintendo Co, you can compare the effects of market volatilities on Amkor Technology and Nintendo 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 Nintendo. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amkor Technology and Nintendo.
Diversification Opportunities for Amkor Technology and Nintendo
-0.37 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Amkor and Nintendo is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding Amkor Technology and Nintendo Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nintendo 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 Nintendo. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nintendo has no effect on the direction of Amkor Technology i.e., Amkor Technology and Nintendo go up and down completely randomly.
Pair Corralation between Amkor Technology and Nintendo
Assuming the 90 days horizon Amkor Technology is expected to generate 4.04 times less return on investment than Nintendo. But when comparing it to its historical volatility, Amkor Technology is 1.28 times less risky than Nintendo. It trades about 0.08 of its potential returns per unit of risk. Nintendo Co is currently generating about 0.25 of returns per unit of risk over similar time horizon. If you would invest 1,200 in Nintendo Co on September 15, 2024 and sell it today you would earn a total of 190.00 from holding Nintendo Co or generate 15.83% 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. Nintendo Co
Performance |
| Timeline |
| Amkor Technology |
| Nintendo |
Amkor Technology and Nintendo Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amkor Technology and Nintendo
The main advantage of trading using opposite Amkor Technology and Nintendo positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amkor Technology position performs unexpectedly, Nintendo 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 Nintendo will offset losses from the drop in Nintendo's long position.| Amkor Technology vs. Taiwan Semiconductor Manufacturing | Amkor Technology vs. Broadcom | Amkor Technology vs. Superior Plus Corp | Amkor Technology vs. SIVERS SEMICONDUCTORS AB |
| Nintendo vs. FANDIFI TECHNOLOGY P | Nintendo vs. BOS BETTER ONLINE | Nintendo vs. Amkor Technology | Nintendo vs. SALESFORCE INC CDR |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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