Correlation Between Amkor Technology and Cracker Barrel
Can any of the company-specific risk be diversified away by investing in both Amkor Technology and Cracker Barrel 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 Cracker Barrel into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Amkor Technology and Cracker Barrel Old, you can compare the effects of market volatilities on Amkor Technology and Cracker Barrel 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 Cracker Barrel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amkor Technology and Cracker Barrel.
Diversification Opportunities for Amkor Technology and Cracker Barrel
-0.5 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Amkor and Cracker is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding Amkor Technology and Cracker Barrel Old in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cracker Barrel Old 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 Cracker Barrel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cracker Barrel Old has no effect on the direction of Amkor Technology i.e., Amkor Technology and Cracker Barrel go up and down completely randomly.
Pair Corralation between Amkor Technology and Cracker Barrel
Given the investment horizon of 90 days Amkor Technology is expected to generate 0.96 times more return on investment than Cracker Barrel. However, Amkor Technology is 1.04 times less risky than Cracker Barrel. It trades about 0.03 of its potential returns per unit of risk. Cracker Barrel Old is currently generating about 0.0 per unit of risk. If you would invest 2,330 in Amkor Technology on September 1, 2024 and sell it today you would earn a total of 314.00 from holding Amkor Technology or generate 13.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Amkor Technology vs. Cracker Barrel Old
Performance |
| Timeline |
| Amkor Technology |
| Cracker Barrel Old |
Amkor Technology and Cracker Barrel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amkor Technology and Cracker Barrel
The main advantage of trading using opposite Amkor Technology and Cracker Barrel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amkor Technology position performs unexpectedly, Cracker Barrel 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 Cracker Barrel will offset losses from the drop in Cracker Barrel's long position.| Amkor Technology vs. NXP Semiconductors NV | Amkor Technology vs. GSI Technology | Amkor Technology vs. MaxLinear | Amkor Technology vs. Texas Instruments Incorporated |
| Cracker Barrel vs. The Wendys Co | Cracker Barrel vs. Shake Shack | Cracker Barrel vs. Papa Johns International | Cracker Barrel vs. Darden Restaurants |
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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