Correlation Between Amkor Technology and Brookfield Finance
Can any of the company-specific risk be diversified away by investing in both Amkor Technology and Brookfield Finance 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 Brookfield Finance into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Amkor Technology and Brookfield Finance I, you can compare the effects of market volatilities on Amkor Technology and Brookfield Finance 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 Brookfield Finance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amkor Technology and Brookfield Finance.
Diversification Opportunities for Amkor Technology and Brookfield Finance
-0.56 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Amkor and Brookfield is -0.56. Overlapping area represents the amount of risk that can be diversified away by holding Amkor Technology and Brookfield Finance I in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Brookfield Finance 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 Brookfield Finance. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Brookfield Finance has no effect on the direction of Amkor Technology i.e., Amkor Technology and Brookfield Finance go up and down completely randomly.
Pair Corralation between Amkor Technology and Brookfield Finance
If you would invest 1,506 in Brookfield Finance I on September 14, 2024 and sell it today you would earn a total of 0.00 from holding Brookfield Finance I or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 0.4% |
| Values | Daily Returns |
Amkor Technology vs. Brookfield Finance I
Performance |
| Timeline |
| Amkor Technology |
| Brookfield Finance |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Amkor Technology and Brookfield Finance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amkor Technology and Brookfield Finance
The main advantage of trading using opposite Amkor Technology and Brookfield Finance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amkor Technology position performs unexpectedly, Brookfield Finance 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 Brookfield Finance will offset losses from the drop in Brookfield Finance's long position.| Amkor Technology vs. Power Integrations | Amkor Technology vs. Diodes Incorporated | Amkor Technology vs. MACOM Technology Solutions | Amkor Technology vs. Cirrus Logic |
| Brookfield Finance vs. BJs Restaurants | Brookfield Finance vs. Anheuser Busch Inbev | Brookfield Finance vs. Park Hotels Resorts | Brookfield Finance vs. Universal |
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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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