Correlation Between Amkor Technology and Eltek
Can any of the company-specific risk be diversified away by investing in both Amkor Technology and Eltek 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 Eltek into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Amkor Technology and Eltek, you can compare the effects of market volatilities on Amkor Technology and Eltek 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 Eltek. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amkor Technology and Eltek.
Diversification Opportunities for Amkor Technology and Eltek
-0.26 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Amkor and Eltek is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding Amkor Technology and Eltek in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eltek 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 Eltek. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eltek has no effect on the direction of Amkor Technology i.e., Amkor Technology and Eltek go up and down completely randomly.
Pair Corralation between Amkor Technology and Eltek
Given the investment horizon of 90 days Amkor Technology is expected to generate 13.09 times less return on investment than Eltek. But when comparing it to its historical volatility, Amkor Technology is 1.71 times less risky than Eltek. It trades about 0.01 of its potential returns per unit of risk. Eltek is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 415.00 in Eltek on November 6, 2024 and sell it today you would earn a total of 668.00 from holding Eltek or generate 160.96% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Amkor Technology vs. Eltek
Performance |
| Timeline |
| Amkor Technology |
| Eltek |
Amkor Technology and Eltek Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amkor Technology and Eltek
The main advantage of trading using opposite Amkor Technology and Eltek positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amkor Technology position performs unexpectedly, Eltek 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 Eltek will offset losses from the drop in Eltek's long position.| Amkor Technology vs. First Solar | Amkor Technology vs. Sunrun Inc | Amkor Technology vs. Canadian Solar | Amkor Technology vs. SolarEdge Technologies |
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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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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