Correlation Between Amkor Technology and Bowhead Specialty
Can any of the company-specific risk be diversified away by investing in both Amkor Technology and Bowhead Specialty 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 Bowhead Specialty into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Amkor Technology and Bowhead Specialty Holdings, you can compare the effects of market volatilities on Amkor Technology and Bowhead Specialty 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 Bowhead Specialty. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amkor Technology and Bowhead Specialty.
Diversification Opportunities for Amkor Technology and Bowhead Specialty
-0.04 | Correlation Coefficient |
Good diversification
The 3 months correlation between Amkor and Bowhead is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding Amkor Technology and Bowhead Specialty Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bowhead Specialty 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 Bowhead Specialty. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bowhead Specialty has no effect on the direction of Amkor Technology i.e., Amkor Technology and Bowhead Specialty go up and down completely randomly.
Pair Corralation between Amkor Technology and Bowhead Specialty
Given the investment horizon of 90 days Amkor Technology is expected to under-perform the Bowhead Specialty. In addition to that, Amkor Technology is 1.32 times more volatile than Bowhead Specialty Holdings. It trades about -0.16 of its total potential returns per unit of risk. Bowhead Specialty Holdings is currently generating about -0.13 per unit of volatility. If you would invest 3,385 in Bowhead Specialty Holdings on November 4, 2024 and sell it today you would lose (152.00) from holding Bowhead Specialty Holdings or give up 4.49% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Amkor Technology vs. Bowhead Specialty Holdings
Performance |
| Timeline |
| Amkor Technology |
| Bowhead Specialty |
Amkor Technology and Bowhead Specialty Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amkor Technology and Bowhead Specialty
The main advantage of trading using opposite Amkor Technology and Bowhead Specialty positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amkor Technology position performs unexpectedly, Bowhead Specialty 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 Bowhead Specialty will offset losses from the drop in Bowhead Specialty's long position.| Amkor Technology vs. First Solar | Amkor Technology vs. Sunrun Inc | Amkor Technology vs. Canadian Solar | Amkor Technology vs. SolarEdge Technologies |
| Bowhead Specialty vs. Playtech plc | Bowhead Specialty vs. Mattel Inc | Bowhead Specialty vs. Northstar Clean Technologies | Bowhead Specialty vs. CleanGo Innovations |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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