Correlation Between Amkor Technology and Pinterest
Can any of the company-specific risk be diversified away by investing in both Amkor Technology and Pinterest 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 Pinterest into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Amkor Technology and Pinterest, you can compare the effects of market volatilities on Amkor Technology and Pinterest 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 Pinterest. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amkor Technology and Pinterest.
Diversification Opportunities for Amkor Technology and Pinterest
0.33 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Amkor and Pinterest is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding Amkor Technology and Pinterest in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pinterest 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 Pinterest. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pinterest has no effect on the direction of Amkor Technology i.e., Amkor Technology and Pinterest go up and down completely randomly.
Pair Corralation between Amkor Technology and Pinterest
Given the investment horizon of 90 days Amkor Technology is expected to generate 2.03 times less return on investment than Pinterest. In addition to that, Amkor Technology is 1.02 times more volatile than Pinterest. It trades about 0.02 of its total potential returns per unit of risk. Pinterest is currently generating about 0.03 per unit of volatility. If you would invest 2,316 in Pinterest on August 30, 2024 and sell it today you would earn a total of 716.00 from holding Pinterest or generate 30.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Amkor Technology vs. Pinterest
Performance |
| Timeline |
| Amkor Technology |
Amkor Technology and Pinterest Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amkor Technology and Pinterest
The main advantage of trading using opposite Amkor Technology and Pinterest positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amkor Technology position performs unexpectedly, Pinterest 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 Pinterest will offset losses from the drop in Pinterest's long position.| Amkor Technology vs. Power Integrations | Amkor Technology vs. Diodes Incorporated | Amkor Technology vs. MACOM Technology Solutions | Amkor Technology vs. Cirrus Logic |
| Pinterest vs. Twilio Inc | Pinterest vs. Meta Platforms | Pinterest vs. Alphabet Inc Class C | Pinterest vs. Alphabet Inc Class A |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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