Correlation Between Amkor Technology and CannaGlobal Acquisition
Can any of the company-specific risk be diversified away by investing in both Amkor Technology and CannaGlobal Acquisition 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 CannaGlobal Acquisition into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Amkor Technology and CannaGlobal Acquisition Corp, you can compare the effects of market volatilities on Amkor Technology and CannaGlobal Acquisition 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 CannaGlobal Acquisition. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amkor Technology and CannaGlobal Acquisition.
Diversification Opportunities for Amkor Technology and CannaGlobal Acquisition
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Amkor and CannaGlobal is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Amkor Technology and CannaGlobal Acquisition Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CannaGlobal Acquisition 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 CannaGlobal Acquisition. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CannaGlobal Acquisition has no effect on the direction of Amkor Technology i.e., Amkor Technology and CannaGlobal Acquisition go up and down completely randomly.
Pair Corralation between Amkor Technology and CannaGlobal Acquisition
If you would invest 2,545 in Amkor Technology on September 1, 2024 and sell it today you would earn a total of 99.00 from holding Amkor Technology or generate 3.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 4.76% |
| Values | Daily Returns |
Amkor Technology vs. CannaGlobal Acquisition Corp
Performance |
| Timeline |
| Amkor Technology |
| CannaGlobal Acquisition |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Amkor Technology and CannaGlobal Acquisition Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amkor Technology and CannaGlobal Acquisition
The main advantage of trading using opposite Amkor Technology and CannaGlobal Acquisition positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amkor Technology position performs unexpectedly, CannaGlobal Acquisition 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 CannaGlobal Acquisition will offset losses from the drop in CannaGlobal Acquisition's long position.| Amkor Technology vs. NXP Semiconductors NV | Amkor Technology vs. GSI Technology | Amkor Technology vs. MaxLinear | Amkor Technology vs. Texas Instruments Incorporated |
| CannaGlobal Acquisition vs. Vishay Intertechnology | CannaGlobal Acquisition vs. Elmos Semiconductor SE | CannaGlobal Acquisition vs. Valens | CannaGlobal Acquisition vs. ACG Metals Limited |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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