Correlation Between Amkor Technology and Dolphin Entertainment
Can any of the company-specific risk be diversified away by investing in both Amkor Technology and Dolphin Entertainment 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 Dolphin Entertainment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Amkor Technology and Dolphin Entertainment, you can compare the effects of market volatilities on Amkor Technology and Dolphin Entertainment 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 Dolphin Entertainment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amkor Technology and Dolphin Entertainment.
Diversification Opportunities for Amkor Technology and Dolphin Entertainment
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Amkor and Dolphin is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding Amkor Technology and Dolphin Entertainment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dolphin Entertainment 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 Dolphin Entertainment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dolphin Entertainment has no effect on the direction of Amkor Technology i.e., Amkor Technology and Dolphin Entertainment go up and down completely randomly.
Pair Corralation between Amkor Technology and Dolphin Entertainment
Given the investment horizon of 90 days Amkor Technology is expected to generate 0.74 times more return on investment than Dolphin Entertainment. However, Amkor Technology is 1.35 times less risky than Dolphin Entertainment. It trades about -0.03 of its potential returns per unit of risk. Dolphin Entertainment is currently generating about -0.1 per unit of risk. If you would invest 3,216 in Amkor Technology on August 31, 2024 and sell it today you would lose (572.00) from holding Amkor Technology or give up 17.79% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Amkor Technology vs. Dolphin Entertainment
Performance |
| Timeline |
| Amkor Technology |
| Dolphin Entertainment |
Amkor Technology and Dolphin Entertainment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amkor Technology and Dolphin Entertainment
The main advantage of trading using opposite Amkor Technology and Dolphin Entertainment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amkor Technology position performs unexpectedly, Dolphin Entertainment 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 Dolphin Entertainment will offset losses from the drop in Dolphin Entertainment's long position.| Amkor Technology vs. Power Integrations | Amkor Technology vs. Diodes Incorporated | Amkor Technology vs. MACOM Technology Solutions | Amkor Technology vs. Cirrus Logic |
| Dolphin Entertainment vs. Hall of Fame | Dolphin Entertainment vs. Wisekey International Holding | Dolphin Entertainment vs. Oriental Culture Holding |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
Other Complementary Tools
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas |