Correlation Between Amkor Technology and American Virtual
Can any of the company-specific risk be diversified away by investing in both Amkor Technology and American Virtual 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 American Virtual into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Amkor Technology and American Virtual Cloud, you can compare the effects of market volatilities on Amkor Technology and American Virtual 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 American Virtual. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amkor Technology and American Virtual.
Diversification Opportunities for Amkor Technology and American Virtual
0.36 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Amkor and American is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding Amkor Technology and American Virtual Cloud in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on American Virtual Cloud 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 American Virtual. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of American Virtual Cloud has no effect on the direction of Amkor Technology i.e., Amkor Technology and American Virtual go up and down completely randomly.
Pair Corralation between Amkor Technology and American Virtual
If you would invest 2,961 in Amkor Technology on September 4, 2024 and sell it today you would lose (263.00) from holding Amkor Technology or give up 8.88% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 0.4% |
| Values | Daily Returns |
Amkor Technology vs. American Virtual Cloud
Performance |
| Timeline |
| Amkor Technology |
| American Virtual Cloud |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Amkor Technology and American Virtual Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amkor Technology and American Virtual
The main advantage of trading using opposite Amkor Technology and American Virtual positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amkor Technology position performs unexpectedly, American Virtual 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 American Virtual will offset losses from the drop in American Virtual's long position.| Amkor Technology vs. NXP Semiconductors NV | Amkor Technology vs. Analog Devices | Amkor Technology vs. Monolithic Power Systems | Amkor Technology vs. ON Semiconductor |
| American Virtual vs. Integral Ad Science | American Virtual vs. Globalfoundries | American Virtual vs. Kulicke and Soffa | American Virtual vs. Amkor Technology |
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 Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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