Correlation Between Amkor Technology and Enersys
Can any of the company-specific risk be diversified away by investing in both Amkor Technology and Enersys 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 Enersys into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Amkor Technology and Enersys, you can compare the effects of market volatilities on Amkor Technology and Enersys 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 Enersys. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amkor Technology and Enersys.
Diversification Opportunities for Amkor Technology and Enersys
0.2 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Amkor and Enersys is 0.2. Overlapping area represents the amount of risk that can be diversified away by holding Amkor Technology and Enersys in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Enersys 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 Enersys. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Enersys has no effect on the direction of Amkor Technology i.e., Amkor Technology and Enersys go up and down completely randomly.
Pair Corralation between Amkor Technology and Enersys
Given the investment horizon of 90 days Amkor Technology is expected to under-perform the Enersys. In addition to that, Amkor Technology is 1.31 times more volatile than Enersys. It trades about -0.11 of its total potential returns per unit of risk. Enersys is currently generating about 0.16 per unit of volatility. If you would invest 9,209 in Enersys on November 3, 2024 and sell it today you would earn a total of 498.00 from holding Enersys or generate 5.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Amkor Technology vs. Enersys
Performance |
| Timeline |
| Amkor Technology |
| Enersys |
Amkor Technology and Enersys Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amkor Technology and Enersys
The main advantage of trading using opposite Amkor Technology and Enersys positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amkor Technology position performs unexpectedly, Enersys 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 Enersys will offset losses from the drop in Enersys' long position.| Amkor Technology vs. Power Integrations | Amkor Technology vs. Diodes Incorporated | Amkor Technology vs. MACOM Technology Solutions | Amkor Technology vs. Cirrus Logic |
| Enersys vs. Advanced Energy Industries | Enersys vs. Hubbell | Enersys vs. Acuity Brands | Enersys vs. Kimball Electronics |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
Other Complementary Tools
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets |