Correlation Between Amkor Technology and CAVA Group,
Can any of the company-specific risk be diversified away by investing in both Amkor Technology and CAVA Group, 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 CAVA Group, into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Amkor Technology and CAVA Group,, you can compare the effects of market volatilities on Amkor Technology and CAVA Group, 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 CAVA Group,. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amkor Technology and CAVA Group,.
Diversification Opportunities for Amkor Technology and CAVA Group,
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Amkor and CAVA is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding Amkor Technology and CAVA Group, in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CAVA Group, 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 CAVA Group,. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CAVA Group, has no effect on the direction of Amkor Technology i.e., Amkor Technology and CAVA Group, go up and down completely randomly.
Pair Corralation between Amkor Technology and CAVA Group,
Given the investment horizon of 90 days Amkor Technology is expected to generate 29.86 times less return on investment than CAVA Group,. But when comparing it to its historical volatility, Amkor Technology is 1.31 times less risky than CAVA Group,. It trades about 0.0 of its potential returns per unit of risk. CAVA Group, is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 4,378 in CAVA Group, on December 10, 2024 and sell it today you would earn a total of 4,034 from holding CAVA Group, or generate 92.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 87.88% |
| Values | Daily Returns |
Amkor Technology vs. CAVA Group,
Performance |
| Timeline |
| Amkor Technology |
| CAVA Group, |
Amkor Technology and CAVA Group, Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amkor Technology and CAVA Group,
The main advantage of trading using opposite Amkor Technology and CAVA Group, positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amkor Technology position performs unexpectedly, CAVA Group, 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 CAVA Group, will offset losses from the drop in CAVA Group,'s long position.| Amkor Technology vs. Power Integrations | Amkor Technology vs. Diodes Incorporated | Amkor Technology vs. MACOM Technology Solutions | Amkor Technology vs. Cirrus Logic |
| CAVA Group, vs. Boston Omaha Corp | CAVA Group, vs. Compania Cervecerias Unidas | CAVA Group, vs. Thai Beverage PCL | CAVA Group, vs. High Performance Beverages |
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 Stocks Directory module to find actively traded stocks across global markets.
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