Correlation Between Amkor Technology and Phunware
Can any of the company-specific risk be diversified away by investing in both Amkor Technology and Phunware 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 Phunware into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Amkor Technology and Phunware, you can compare the effects of market volatilities on Amkor Technology and Phunware 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 Phunware. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amkor Technology and Phunware.
Diversification Opportunities for Amkor Technology and Phunware
0.7 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Amkor and Phunware is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding Amkor Technology and Phunware in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Phunware 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 Phunware. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Phunware has no effect on the direction of Amkor Technology i.e., Amkor Technology and Phunware go up and down completely randomly.
Pair Corralation between Amkor Technology and Phunware
If you would invest 20.00 in Phunware on August 29, 2024 and sell it today you would earn a total of 0.00 from holding Phunware or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 4.35% |
| Values | Daily Returns |
Amkor Technology vs. Phunware
Performance |
| Timeline |
| Amkor Technology |
| Phunware |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Amkor Technology and Phunware Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amkor Technology and Phunware
The main advantage of trading using opposite Amkor Technology and Phunware positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amkor Technology position performs unexpectedly, Phunware 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 Phunware will offset losses from the drop in Phunware's long position.| Amkor Technology vs. Power Integrations | Amkor Technology vs. Diodes Incorporated | Amkor Technology vs. MACOM Technology Solutions | Amkor Technology vs. Cirrus Logic |
| Phunware vs. Amkor Technology | Phunware vs. Lipocine | Phunware vs. Western Digital | Phunware vs. PACCAR Inc |
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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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