Correlation Between Amkor Technology and Ellington Financial
Can any of the company-specific risk be diversified away by investing in both Amkor Technology and Ellington Financial 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 Ellington Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Amkor Technology and Ellington Financial, you can compare the effects of market volatilities on Amkor Technology and Ellington Financial 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 Ellington Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amkor Technology and Ellington Financial.
Diversification Opportunities for Amkor Technology and Ellington Financial
-0.43 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Amkor and Ellington is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding Amkor Technology and Ellington Financial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ellington Financial 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 Ellington Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ellington Financial has no effect on the direction of Amkor Technology i.e., Amkor Technology and Ellington Financial go up and down completely randomly.
Pair Corralation between Amkor Technology and Ellington Financial
Given the investment horizon of 90 days Amkor Technology is expected to generate 20.72 times more return on investment than Ellington Financial. However, Amkor Technology is 20.72 times more volatile than Ellington Financial. It trades about 0.07 of its potential returns per unit of risk. Ellington Financial is currently generating about 0.32 per unit of risk. If you would invest 2,600 in Amkor Technology on September 13, 2024 and sell it today you would earn a total of 69.00 from holding Amkor Technology or generate 2.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Amkor Technology vs. Ellington Financial
Performance |
| Timeline |
| Amkor Technology |
| Ellington Financial |
Amkor Technology and Ellington Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amkor Technology and Ellington Financial
The main advantage of trading using opposite Amkor Technology and Ellington Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amkor Technology position performs unexpectedly, Ellington Financial 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 Ellington Financial will offset losses from the drop in Ellington Financial's long position.| Amkor Technology vs. Power Integrations | Amkor Technology vs. Diodes Incorporated | Amkor Technology vs. MACOM Technology Solutions | Amkor Technology vs. Cirrus Logic |
| Ellington Financial vs. 17 Education Technology | Ellington Financial vs. Universal Technical Institute | Ellington Financial vs. Acco Brands | Ellington Financial vs. American Axle Manufacturing |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
Other Complementary Tools
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals |