Correlation Between Amkor Technology and PSI Software
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By analyzing existing cross correlation between Amkor Technology and PSI Software AG, you can compare the effects of market volatilities on Amkor Technology and PSI Software 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 PSI Software. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amkor Technology and PSI Software.
Diversification Opportunities for Amkor Technology and PSI Software
0.1 | Correlation Coefficient |
Average diversification
The 3 months correlation between Amkor and PSI is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding Amkor Technology and PSI Software AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PSI Software AG 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 PSI Software. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PSI Software AG has no effect on the direction of Amkor Technology i.e., Amkor Technology and PSI Software go up and down completely randomly.
Pair Corralation between Amkor Technology and PSI Software
Assuming the 90 days horizon Amkor Technology is expected to generate 1.75 times more return on investment than PSI Software. However, Amkor Technology is 1.75 times more volatile than PSI Software AG. It trades about -0.01 of its potential returns per unit of risk. PSI Software AG is currently generating about -0.09 per unit of risk. If you would invest 2,550 in Amkor Technology on August 30, 2024 and sell it today you would lose (26.00) from holding Amkor Technology or give up 1.02% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Amkor Technology vs. PSI Software AG
Performance |
| Timeline |
| Amkor Technology |
| PSI Software AG |
Amkor Technology and PSI Software Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amkor Technology and PSI Software
The main advantage of trading using opposite Amkor Technology and PSI Software positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amkor Technology position performs unexpectedly, PSI Software 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 PSI Software will offset losses from the drop in PSI Software's long position.| Amkor Technology vs. NVIDIA | Amkor Technology vs. Texas Instruments Incorporated | Amkor Technology vs. Advanced Micro Devices | Amkor Technology vs. Advanced Micro Devices |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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