Correlation Between Amkor Technology and Golden Heaven
Can any of the company-specific risk be diversified away by investing in both Amkor Technology and Golden Heaven 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 Golden Heaven into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Amkor Technology and Golden Heaven Group, you can compare the effects of market volatilities on Amkor Technology and Golden Heaven 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 Golden Heaven. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amkor Technology and Golden Heaven.
Diversification Opportunities for Amkor Technology and Golden Heaven
0.41 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Amkor and Golden is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding Amkor Technology and Golden Heaven Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Golden Heaven Group 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 Golden Heaven. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Golden Heaven Group has no effect on the direction of Amkor Technology i.e., Amkor Technology and Golden Heaven go up and down completely randomly.
Pair Corralation between Amkor Technology and Golden Heaven
Given the investment horizon of 90 days Amkor Technology is expected to under-perform the Golden Heaven. But the stock apears to be less risky and, when comparing its historical volatility, Amkor Technology is 4.37 times less risky than Golden Heaven. The stock trades about -0.06 of its potential returns per unit of risk. The Golden Heaven Group is currently generating about 0.21 of returns per unit of risk over similar time horizon. If you would invest 196.00 in Golden Heaven Group on October 24, 2024 and sell it today you would earn a total of 34.00 from holding Golden Heaven Group or generate 17.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Amkor Technology vs. Golden Heaven Group
Performance |
| Timeline |
| Amkor Technology |
| Golden Heaven Group |
Amkor Technology and Golden Heaven Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amkor Technology and Golden Heaven
The main advantage of trading using opposite Amkor Technology and Golden Heaven positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amkor Technology position performs unexpectedly, Golden Heaven 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 Golden Heaven will offset losses from the drop in Golden Heaven's long position.| Amkor Technology vs. First Solar | Amkor Technology vs. Sunrun Inc | Amkor Technology vs. Canadian Solar | Amkor Technology vs. SolarEdge Technologies |
| Golden Heaven vs. Jabil Circuit | Golden Heaven vs. Arrow Electronics | Golden Heaven vs. Alta Equipment Group | Golden Heaven vs. Amkor Technology |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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