Correlation Between Amkor Technology and Cyberlux Corp
Can any of the company-specific risk be diversified away by investing in both Amkor Technology and Cyberlux Corp 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 Cyberlux Corp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Amkor Technology and Cyberlux Corp, you can compare the effects of market volatilities on Amkor Technology and Cyberlux Corp 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 Cyberlux Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amkor Technology and Cyberlux Corp.
Diversification Opportunities for Amkor Technology and Cyberlux Corp
-0.45 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Amkor and Cyberlux is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding Amkor Technology and Cyberlux Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cyberlux Corp 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 Cyberlux Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cyberlux Corp has no effect on the direction of Amkor Technology i.e., Amkor Technology and Cyberlux Corp go up and down completely randomly.
Pair Corralation between Amkor Technology and Cyberlux Corp
Given the investment horizon of 90 days Amkor Technology is expected to generate 0.26 times more return on investment than Cyberlux Corp. However, Amkor Technology is 3.91 times less risky than Cyberlux Corp. It trades about -0.19 of its potential returns per unit of risk. Cyberlux Corp is currently generating about -0.27 per unit of risk. If you would invest 2,953 in Amkor Technology on August 27, 2024 and sell it today you would lose (299.00) from holding Amkor Technology or give up 10.13% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Amkor Technology vs. Cyberlux Corp
Performance |
| Timeline |
| Amkor Technology |
| Cyberlux Corp |
Amkor Technology and Cyberlux Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amkor Technology and Cyberlux Corp
The main advantage of trading using opposite Amkor Technology and Cyberlux Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amkor Technology position performs unexpectedly, Cyberlux Corp 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 Cyberlux Corp will offset losses from the drop in Cyberlux Corp's long position.| Amkor Technology vs. Power Integrations | Amkor Technology vs. Diodes Incorporated | Amkor Technology vs. MACOM Technology Solutions | Amkor Technology vs. Cirrus Logic |
| Cyberlux Corp vs. Nano Labs | Cyberlux Corp vs. Wisekey International Holding | Cyberlux Corp vs. Peraso Inc | Cyberlux Corp vs. GSI Technology |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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