Correlation Between Amkor Technology and Lionsgate Studios
Can any of the company-specific risk be diversified away by investing in both Amkor Technology and Lionsgate Studios 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 Lionsgate Studios into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Amkor Technology and Lionsgate Studios Corp, you can compare the effects of market volatilities on Amkor Technology and Lionsgate Studios 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 Lionsgate Studios. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amkor Technology and Lionsgate Studios.
Diversification Opportunities for Amkor Technology and Lionsgate Studios
0.03 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Amkor and Lionsgate is 0.03. Overlapping area represents the amount of risk that can be diversified away by holding Amkor Technology and Lionsgate Studios Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lionsgate Studios Corp 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 Lionsgate Studios. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lionsgate Studios Corp has no effect on the direction of Amkor Technology i.e., Amkor Technology and Lionsgate Studios go up and down completely randomly.
Pair Corralation between Amkor Technology and Lionsgate Studios
Given the investment horizon of 90 days Amkor Technology is expected to generate 3.41 times less return on investment than Lionsgate Studios. But when comparing it to its historical volatility, Amkor Technology is 1.3 times less risky than Lionsgate Studios. It trades about 0.05 of its potential returns per unit of risk. Lionsgate Studios Corp is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest 679.00 in Lionsgate Studios Corp on September 2, 2024 and sell it today you would earn a total of 44.00 from holding Lionsgate Studios Corp or generate 6.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Amkor Technology vs. Lionsgate Studios Corp
Performance |
| Timeline |
| Amkor Technology |
| Lionsgate Studios Corp |
Amkor Technology and Lionsgate Studios Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amkor Technology and Lionsgate Studios
The main advantage of trading using opposite Amkor Technology and Lionsgate Studios positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amkor Technology position performs unexpectedly, Lionsgate Studios 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 Lionsgate Studios will offset losses from the drop in Lionsgate Studios' long position.| Amkor Technology vs. NXP Semiconductors NV | Amkor Technology vs. GSI Technology | Amkor Technology vs. MaxLinear | Amkor Technology vs. Texas Instruments Incorporated |
| Lionsgate Studios vs. Jacobs Solutions | Lionsgate Studios vs. Amkor Technology | Lionsgate Studios vs. Paysafe | Lionsgate Studios vs. Analog Devices |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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