Correlation Between Amkor Technology and Virgin Group
Can any of the company-specific risk be diversified away by investing in both Amkor Technology and Virgin Group 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 Virgin Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Amkor Technology and Virgin Group Acquisition, you can compare the effects of market volatilities on Amkor Technology and Virgin Group 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 Virgin Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amkor Technology and Virgin Group.
Diversification Opportunities for Amkor Technology and Virgin Group
-0.21 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Amkor and Virgin is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding Amkor Technology and Virgin Group Acquisition in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Virgin Group Acquisition 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 Virgin Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Virgin Group Acquisition has no effect on the direction of Amkor Technology i.e., Amkor Technology and Virgin Group go up and down completely randomly.
Pair Corralation between Amkor Technology and Virgin Group
Given the investment horizon of 90 days Amkor Technology is expected to under-perform the Virgin Group. But the stock apears to be less risky and, when comparing its historical volatility, Amkor Technology is 2.68 times less risky than Virgin Group. The stock trades about 0.0 of its potential returns per unit of risk. The Virgin Group Acquisition is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 148.00 in Virgin Group Acquisition on September 12, 2024 and sell it today you would lose (2.00) from holding Virgin Group Acquisition or give up 1.35% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Amkor Technology vs. Virgin Group Acquisition
Performance |
| Timeline |
| Amkor Technology |
| Virgin Group Acquisition |
Amkor Technology and Virgin Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amkor Technology and Virgin Group
The main advantage of trading using opposite Amkor Technology and Virgin Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amkor Technology position performs unexpectedly, Virgin Group 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 Virgin Group will offset losses from the drop in Virgin Group's long position.| Amkor Technology vs. Power Integrations | Amkor Technology vs. Diodes Incorporated | Amkor Technology vs. MACOM Technology Solutions | Amkor Technology vs. Cirrus Logic |
| Virgin Group vs. Mannatech Incorporated | Virgin Group vs. Edgewell Personal Care | Virgin Group vs. Inter Parfums | Virgin Group vs. Nu Skin Enterprises |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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