Correlation Between Amkor Technology and Bel Fuse
Can any of the company-specific risk be diversified away by investing in both Amkor Technology and Bel Fuse 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 Bel Fuse into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Amkor Technology and Bel Fuse A, you can compare the effects of market volatilities on Amkor Technology and Bel Fuse 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 Bel Fuse. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amkor Technology and Bel Fuse.
Diversification Opportunities for Amkor Technology and Bel Fuse
-0.18 | Correlation Coefficient |
Good diversification
The 3 months correlation between Amkor and Bel is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding Amkor Technology and Bel Fuse A in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bel Fuse A 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 Bel Fuse. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bel Fuse A has no effect on the direction of Amkor Technology i.e., Amkor Technology and Bel Fuse go up and down completely randomly.
Pair Corralation between Amkor Technology and Bel Fuse
Given the investment horizon of 90 days Amkor Technology is expected to generate 9.01 times less return on investment than Bel Fuse. In addition to that, Amkor Technology is 1.07 times more volatile than Bel Fuse A. It trades about 0.01 of its total potential returns per unit of risk. Bel Fuse A is currently generating about 0.08 per unit of volatility. If you would invest 5,154 in Bel Fuse A on August 26, 2024 and sell it today you would earn a total of 4,251 from holding Bel Fuse A or generate 82.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.4% |
| Values | Daily Returns |
Amkor Technology vs. Bel Fuse A
Performance |
| Timeline |
| Amkor Technology |
| Bel Fuse A |
Amkor Technology and Bel Fuse Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amkor Technology and Bel Fuse
The main advantage of trading using opposite Amkor Technology and Bel Fuse positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amkor Technology position performs unexpectedly, Bel Fuse 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 Bel Fuse will offset losses from the drop in Bel Fuse's long position.| Amkor Technology vs. Teradyne | Amkor Technology vs. IPG Photonics | Amkor Technology vs. Applied Materials |
| Bel Fuse vs. Plexus Corp | Bel Fuse vs. Benchmark Electronics | Bel Fuse vs. Jabil Circuit | Bel Fuse vs. Sanmina |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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