Correlation Between Amkor Technology and Inter Parfums
Can any of the company-specific risk be diversified away by investing in both Amkor Technology and Inter Parfums 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 Inter Parfums into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Amkor Technology and Inter Parfums, you can compare the effects of market volatilities on Amkor Technology and Inter Parfums 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 Inter Parfums. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amkor Technology and Inter Parfums.
Diversification Opportunities for Amkor Technology and Inter Parfums
-0.58 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Amkor and Inter is -0.58. Overlapping area represents the amount of risk that can be diversified away by holding Amkor Technology and Inter Parfums in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Inter Parfums 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 Inter Parfums. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Inter Parfums has no effect on the direction of Amkor Technology i.e., Amkor Technology and Inter Parfums go up and down completely randomly.
Pair Corralation between Amkor Technology and Inter Parfums
Given the investment horizon of 90 days Amkor Technology is expected to generate 1.47 times less return on investment than Inter Parfums. In addition to that, Amkor Technology is 1.31 times more volatile than Inter Parfums. It trades about 0.02 of its total potential returns per unit of risk. Inter Parfums is currently generating about 0.04 per unit of volatility. If you would invest 9,506 in Inter Parfums on September 13, 2024 and sell it today you would earn a total of 4,148 from holding Inter Parfums or generate 43.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.8% |
| Values | Daily Returns |
Amkor Technology vs. Inter Parfums
Performance |
| Timeline |
| Amkor Technology |
| Inter Parfums |
Amkor Technology and Inter Parfums Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amkor Technology and Inter Parfums
The main advantage of trading using opposite Amkor Technology and Inter Parfums positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amkor Technology position performs unexpectedly, Inter Parfums 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 Inter Parfums will offset losses from the drop in Inter Parfums' long position.| Amkor Technology vs. Power Integrations | Amkor Technology vs. Diodes Incorporated | Amkor Technology vs. MACOM Technology Solutions | Amkor Technology vs. Cirrus Logic |
| Inter Parfums vs. Edgewell Personal Care | Inter Parfums vs. Nu Skin Enterprises | Inter Parfums vs. Helen of Troy | Inter Parfums vs. European Wax Center |
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 Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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