Correlation Between Amkor Technology and CapitaLand Investment
Can any of the company-specific risk be diversified away by investing in both Amkor Technology and CapitaLand Investment 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 CapitaLand Investment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Amkor Technology and CapitaLand Investment Limited, you can compare the effects of market volatilities on Amkor Technology and CapitaLand Investment 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 CapitaLand Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amkor Technology and CapitaLand Investment.
Diversification Opportunities for Amkor Technology and CapitaLand Investment
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Amkor and CapitaLand is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Amkor Technology and CapitaLand Investment Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CapitaLand Investment 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 CapitaLand Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CapitaLand Investment has no effect on the direction of Amkor Technology i.e., Amkor Technology and CapitaLand Investment go up and down completely randomly.
Pair Corralation between Amkor Technology and CapitaLand Investment
Given the investment horizon of 90 days Amkor Technology is expected to generate 3.16 times less return on investment than CapitaLand Investment. But when comparing it to its historical volatility, Amkor Technology is 1.84 times less risky than CapitaLand Investment. It trades about 0.02 of its potential returns per unit of risk. CapitaLand Investment Limited is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 194.00 in CapitaLand Investment Limited on September 14, 2024 and sell it today you would earn a total of 5.00 from holding CapitaLand Investment Limited or generate 2.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 99.63% |
| Values | Daily Returns |
Amkor Technology vs. CapitaLand Investment Limited
Performance |
| Timeline |
| Amkor Technology |
| CapitaLand Investment |
Amkor Technology and CapitaLand Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amkor Technology and CapitaLand Investment
The main advantage of trading using opposite Amkor Technology and CapitaLand Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amkor Technology position performs unexpectedly, CapitaLand Investment 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 CapitaLand Investment will offset losses from the drop in CapitaLand Investment's long position.| Amkor Technology vs. Power Integrations | Amkor Technology vs. Diodes Incorporated | Amkor Technology vs. MACOM Technology Solutions | Amkor Technology vs. Cirrus Logic |
| CapitaLand Investment vs. Asia Pptys | CapitaLand Investment vs. Adler Group SA | CapitaLand Investment vs. Ambase Corp | CapitaLand Investment vs. Bridgemarq Real Estate |
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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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