Correlation Between Amkor Technology and Net Lease
Can any of the company-specific risk be diversified away by investing in both Amkor Technology and Net Lease 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 Net Lease into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Amkor Technology and Net Lease Office, you can compare the effects of market volatilities on Amkor Technology and Net Lease 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 Net Lease. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amkor Technology and Net Lease.
Diversification Opportunities for Amkor Technology and Net Lease
-0.29 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Amkor and Net is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding Amkor Technology and Net Lease Office in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Net Lease Office 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 Net Lease. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Net Lease Office has no effect on the direction of Amkor Technology i.e., Amkor Technology and Net Lease go up and down completely randomly.
Pair Corralation between Amkor Technology and Net Lease
Given the investment horizon of 90 days Amkor Technology is expected to under-perform the Net Lease. In addition to that, Amkor Technology is 2.09 times more volatile than Net Lease Office. It trades about -0.21 of its total potential returns per unit of risk. Net Lease Office is currently generating about 0.08 per unit of volatility. If you would invest 3,146 in Net Lease Office on November 30, 2024 and sell it today you would earn a total of 70.00 from holding Net Lease Office or generate 2.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Amkor Technology vs. Net Lease Office
Performance |
| Timeline |
| Amkor Technology |
| Net Lease Office |
Amkor Technology and Net Lease Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amkor Technology and Net Lease
The main advantage of trading using opposite Amkor Technology and Net Lease positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amkor Technology position performs unexpectedly, Net Lease 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 Net Lease will offset losses from the drop in Net Lease's long position.| Amkor Technology vs. Power Integrations | ||
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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 Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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