Correlation Between Amkor Technology and Ecovyst
Can any of the company-specific risk be diversified away by investing in both Amkor Technology and Ecovyst 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 Ecovyst into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Amkor Technology and Ecovyst, you can compare the effects of market volatilities on Amkor Technology and Ecovyst 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 Ecovyst. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amkor Technology and Ecovyst.
Diversification Opportunities for Amkor Technology and Ecovyst
-0.8 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Amkor and Ecovyst is -0.8. Overlapping area represents the amount of risk that can be diversified away by holding Amkor Technology and Ecovyst in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ecovyst 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 Ecovyst. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ecovyst has no effect on the direction of Amkor Technology i.e., Amkor Technology and Ecovyst go up and down completely randomly.
Pair Corralation between Amkor Technology and Ecovyst
Given the investment horizon of 90 days Amkor Technology is expected to under-perform the Ecovyst. In addition to that, Amkor Technology is 1.04 times more volatile than Ecovyst. It trades about -0.06 of its total potential returns per unit of risk. Ecovyst is currently generating about -0.02 per unit of volatility. If you would invest 907.00 in Ecovyst on September 13, 2024 and sell it today you would lose (135.00) from holding Ecovyst or give up 14.88% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 99.2% |
| Values | Daily Returns |
Amkor Technology vs. Ecovyst
Performance |
| Timeline |
| Amkor Technology |
| Ecovyst |
Amkor Technology and Ecovyst Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amkor Technology and Ecovyst
The main advantage of trading using opposite Amkor Technology and Ecovyst positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amkor Technology position performs unexpectedly, Ecovyst 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 Ecovyst will offset losses from the drop in Ecovyst's long position.| Amkor Technology vs. Power Integrations | Amkor Technology vs. Diodes Incorporated | Amkor Technology vs. MACOM Technology Solutions | Amkor Technology vs. Cirrus Logic |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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