Correlation Between Amkor Technology and Waste Management
Can any of the company-specific risk be diversified away by investing in both Amkor Technology and Waste Management 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 Waste Management into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Amkor Technology and Waste Management, you can compare the effects of market volatilities on Amkor Technology and Waste Management 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 Waste Management. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amkor Technology and Waste Management.
Diversification Opportunities for Amkor Technology and Waste Management
-0.65 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Amkor and Waste is -0.65. Overlapping area represents the amount of risk that can be diversified away by holding Amkor Technology and Waste Management in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Waste Management 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 Waste Management. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Waste Management has no effect on the direction of Amkor Technology i.e., Amkor Technology and Waste Management go up and down completely randomly.
Pair Corralation between Amkor Technology and Waste Management
Assuming the 90 days horizon Amkor Technology is expected to generate 1.39 times less return on investment than Waste Management. In addition to that, Amkor Technology is 2.74 times more volatile than Waste Management. It trades about 0.02 of its total potential returns per unit of risk. Waste Management is currently generating about 0.07 per unit of volatility. If you would invest 15,267 in Waste Management on August 30, 2024 and sell it today you would earn a total of 6,338 from holding Waste Management or generate 41.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Amkor Technology vs. Waste Management
Performance |
| Timeline |
| Amkor Technology |
| Waste Management |
Amkor Technology and Waste Management Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amkor Technology and Waste Management
The main advantage of trading using opposite Amkor Technology and Waste Management positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amkor Technology position performs unexpectedly, Waste Management 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 Waste Management will offset losses from the drop in Waste Management'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 |
| Waste Management vs. Apple Inc | Waste Management vs. Apple Inc | Waste Management vs. Superior Plus Corp | Waste Management vs. SIVERS SEMICONDUCTORS AB |
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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
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