Correlation Between Amkor Technology and AlphaVest Acquisition
Can any of the company-specific risk be diversified away by investing in both Amkor Technology and AlphaVest Acquisition 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 AlphaVest Acquisition into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Amkor Technology and AlphaVest Acquisition Corp, you can compare the effects of market volatilities on Amkor Technology and AlphaVest Acquisition 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 AlphaVest Acquisition. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amkor Technology and AlphaVest Acquisition.
Diversification Opportunities for Amkor Technology and AlphaVest Acquisition
-0.77 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Amkor and AlphaVest is -0.77. Overlapping area represents the amount of risk that can be diversified away by holding Amkor Technology and AlphaVest Acquisition Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AlphaVest Acquisition 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 AlphaVest Acquisition. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AlphaVest Acquisition has no effect on the direction of Amkor Technology i.e., Amkor Technology and AlphaVest Acquisition go up and down completely randomly.
Pair Corralation between Amkor Technology and AlphaVest Acquisition
Given the investment horizon of 90 days Amkor Technology is expected to generate 11.66 times more return on investment than AlphaVest Acquisition. However, Amkor Technology is 11.66 times more volatile than AlphaVest Acquisition Corp. It trades about 0.07 of its potential returns per unit of risk. AlphaVest Acquisition Corp is currently generating about 0.31 per unit of risk. If you would invest 2,600 in Amkor Technology on September 13, 2024 and sell it today you would earn a total of 69.00 from holding Amkor Technology or generate 2.65% 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. AlphaVest Acquisition Corp
Performance |
| Timeline |
| Amkor Technology |
| AlphaVest Acquisition |
Amkor Technology and AlphaVest Acquisition Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amkor Technology and AlphaVest Acquisition
The main advantage of trading using opposite Amkor Technology and AlphaVest Acquisition positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amkor Technology position performs unexpectedly, AlphaVest Acquisition 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 AlphaVest Acquisition will offset losses from the drop in AlphaVest Acquisition's long position.| Amkor Technology vs. Power Integrations | Amkor Technology vs. Diodes Incorporated | Amkor Technology vs. MACOM Technology Solutions | Amkor Technology vs. Cirrus Logic |
| AlphaVest Acquisition vs. VirnetX Holding Corp | AlphaVest Acquisition vs. Cadence Design Systems | AlphaVest Acquisition vs. Triton International Limited | AlphaVest Acquisition vs. Qualys 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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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