Correlation Between Amkor Technology and Payoneer Global
Can any of the company-specific risk be diversified away by investing in both Amkor Technology and Payoneer Global 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 Payoneer Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Amkor Technology and Payoneer Global, you can compare the effects of market volatilities on Amkor Technology and Payoneer Global 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 Payoneer Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amkor Technology and Payoneer Global.
Diversification Opportunities for Amkor Technology and Payoneer Global
-0.8 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Amkor and Payoneer is -0.8. Overlapping area represents the amount of risk that can be diversified away by holding Amkor Technology and Payoneer Global in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Payoneer Global 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 Payoneer Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Payoneer Global has no effect on the direction of Amkor Technology i.e., Amkor Technology and Payoneer Global go up and down completely randomly.
Pair Corralation between Amkor Technology and Payoneer Global
Given the investment horizon of 90 days Amkor Technology is expected to under-perform the Payoneer Global. But the stock apears to be less risky and, when comparing its historical volatility, Amkor Technology is 1.87 times less risky than Payoneer Global. The stock trades about -0.16 of its potential returns per unit of risk. The Payoneer Global is currently generating about 0.28 of returns per unit of risk over similar time horizon. If you would invest 847.00 in Payoneer Global on August 28, 2024 and sell it today you would earn a total of 247.00 from holding Payoneer Global or generate 29.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Amkor Technology vs. Payoneer Global
Performance |
| Timeline |
| Amkor Technology |
| Payoneer Global |
Amkor Technology and Payoneer Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amkor Technology and Payoneer Global
The main advantage of trading using opposite Amkor Technology and Payoneer Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amkor Technology position performs unexpectedly, Payoneer Global 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 Payoneer Global will offset losses from the drop in Payoneer Global's long position.| Amkor Technology vs. Power Integrations | Amkor Technology vs. Diodes Incorporated | Amkor Technology vs. MACOM Technology Solutions | Amkor Technology vs. Cirrus Logic |
| Payoneer Global vs. SentinelOne | Payoneer Global vs. CyberArk Software | Payoneer Global vs. MongoDB | Payoneer Global vs. Appian Corp |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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