Correlation Between Amkor Technology and GE Vernova
Can any of the company-specific risk be diversified away by investing in both Amkor Technology and GE Vernova 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 GE Vernova into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Amkor Technology and GE Vernova LLC, you can compare the effects of market volatilities on Amkor Technology and GE Vernova 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 GE Vernova. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amkor Technology and GE Vernova.
Diversification Opportunities for Amkor Technology and GE Vernova
-0.77 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Amkor and GEV is -0.77. Overlapping area represents the amount of risk that can be diversified away by holding Amkor Technology and GE Vernova LLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GE Vernova LLC 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 GE Vernova. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GE Vernova LLC has no effect on the direction of Amkor Technology i.e., Amkor Technology and GE Vernova go up and down completely randomly.
Pair Corralation between Amkor Technology and GE Vernova
Given the investment horizon of 90 days Amkor Technology is expected to under-perform the GE Vernova. But the stock apears to be less risky and, when comparing its historical volatility, Amkor Technology is 1.6 times less risky than GE Vernova. The stock trades about -0.05 of its potential returns per unit of risk. The GE Vernova LLC is currently generating about 0.18 of returns per unit of risk over similar time horizon. If you would invest 29,760 in GE Vernova LLC on August 31, 2024 and sell it today you would earn a total of 3,773 from holding GE Vernova LLC or generate 12.68% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Amkor Technology vs. GE Vernova LLC
Performance |
| Timeline |
| Amkor Technology |
| GE Vernova LLC |
Amkor Technology and GE Vernova Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amkor Technology and GE Vernova
The main advantage of trading using opposite Amkor Technology and GE Vernova positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amkor Technology position performs unexpectedly, GE Vernova 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 GE Vernova will offset losses from the drop in GE Vernova's long position.| Amkor Technology vs. Power Integrations | Amkor Technology vs. Diodes Incorporated | Amkor Technology vs. MACOM Technology Solutions | Amkor Technology vs. Cirrus Logic |
| GE Vernova vs. Fluence Energy | GE Vernova vs. Altus Power | GE Vernova vs. Energy Vault Holdings | GE Vernova vs. Enlight Renewable Energy |
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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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