Correlation Between Amkor Technology and Digital Health
Can any of the company-specific risk be diversified away by investing in both Amkor Technology and Digital Health 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 Digital Health into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Amkor Technology and Digital Health Acquisition, you can compare the effects of market volatilities on Amkor Technology and Digital Health 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 Digital Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amkor Technology and Digital Health.
Diversification Opportunities for Amkor Technology and Digital Health
-0.41 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Amkor and Digital is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding Amkor Technology and Digital Health Acquisition in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Digital Health Acqui 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 Digital Health. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Digital Health Acqui has no effect on the direction of Amkor Technology i.e., Amkor Technology and Digital Health go up and down completely randomly.
Pair Corralation between Amkor Technology and Digital Health
Given the investment horizon of 90 days Amkor Technology is expected to generate 2.81 times less return on investment than Digital Health. But when comparing it to its historical volatility, Amkor Technology is 1.28 times less risky than Digital Health. It trades about 0.02 of its potential returns per unit of risk. Digital Health Acquisition is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 1,164 in Digital Health Acquisition on August 30, 2024 and sell it today you would earn a total of 328.00 from holding Digital Health Acquisition or generate 28.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 76.36% |
| Values | Daily Returns |
Amkor Technology vs. Digital Health Acquisition
Performance |
| Timeline |
| Amkor Technology |
| Digital Health Acqui |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Amkor Technology and Digital Health Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amkor Technology and Digital Health
The main advantage of trading using opposite Amkor Technology and Digital Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amkor Technology position performs unexpectedly, Digital Health 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 Digital Health will offset losses from the drop in Digital Health's long position.| Amkor Technology vs. Power Integrations | Amkor Technology vs. Diodes Incorporated | Amkor Technology vs. MACOM Technology Solutions | Amkor Technology vs. Cirrus Logic |
| Digital Health vs. Chester Mining | Digital Health vs. Kaltura | Digital Health vs. Uranium Energy Corp | Digital Health vs. Sphere Entertainment Co |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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