Correlation Between Amkor Technology and ASURE SOFTWARE
Can any of the company-specific risk be diversified away by investing in both Amkor Technology and ASURE SOFTWARE 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 ASURE SOFTWARE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Amkor Technology and ASURE SOFTWARE, you can compare the effects of market volatilities on Amkor Technology and ASURE 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 ASURE SOFTWARE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amkor Technology and ASURE SOFTWARE.
Diversification Opportunities for Amkor Technology and ASURE SOFTWARE
-0.29 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Amkor and ASURE is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding Amkor Technology and ASURE SOFTWARE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ASURE SOFTWARE 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 ASURE SOFTWARE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ASURE SOFTWARE has no effect on the direction of Amkor Technology i.e., Amkor Technology and ASURE SOFTWARE go up and down completely randomly.
Pair Corralation between Amkor Technology and ASURE SOFTWARE
Assuming the 90 days horizon Amkor Technology is expected to under-perform the ASURE SOFTWARE. In addition to that, Amkor Technology is 1.3 times more volatile than ASURE SOFTWARE. It trades about -0.03 of its total potential returns per unit of risk. ASURE SOFTWARE is currently generating about 0.1 per unit of volatility. If you would invest 690.00 in ASURE SOFTWARE on September 1, 2024 and sell it today you would earn a total of 230.00 from holding ASURE SOFTWARE or generate 33.33% 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. ASURE SOFTWARE
Performance |
| Timeline |
| Amkor Technology |
| ASURE SOFTWARE |
Amkor Technology and ASURE SOFTWARE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amkor Technology and ASURE SOFTWARE
The main advantage of trading using opposite Amkor Technology and ASURE SOFTWARE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amkor Technology position performs unexpectedly, ASURE 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 ASURE SOFTWARE will offset losses from the drop in ASURE SOFTWARE's long position.The idea behind Amkor Technology and ASURE SOFTWARE pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| ASURE SOFTWARE vs. PennyMac Mortgage Investment | ASURE SOFTWARE vs. Autohome ADR | ASURE SOFTWARE vs. bet at home AG | ASURE SOFTWARE vs. NURAN WIRELESS 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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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