Correlation Between Amkor Technology and Prestige Wealth
Can any of the company-specific risk be diversified away by investing in both Amkor Technology and Prestige Wealth 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 Prestige Wealth into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Amkor Technology and Prestige Wealth Ordinary, you can compare the effects of market volatilities on Amkor Technology and Prestige Wealth 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 Prestige Wealth. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amkor Technology and Prestige Wealth.
Diversification Opportunities for Amkor Technology and Prestige Wealth
-0.56 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Amkor and Prestige is -0.56. Overlapping area represents the amount of risk that can be diversified away by holding Amkor Technology and Prestige Wealth Ordinary in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Prestige Wealth Ordinary 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 Prestige Wealth. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Prestige Wealth Ordinary has no effect on the direction of Amkor Technology i.e., Amkor Technology and Prestige Wealth go up and down completely randomly.
Pair Corralation between Amkor Technology and Prestige Wealth
Given the investment horizon of 90 days Amkor Technology is expected to generate 8.67 times less return on investment than Prestige Wealth. But when comparing it to its historical volatility, Amkor Technology is 6.0 times less risky than Prestige Wealth. It trades about 0.02 of its potential returns per unit of risk. Prestige Wealth Ordinary is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 540.00 in Prestige Wealth Ordinary on September 12, 2024 and sell it today you would lose (372.00) from holding Prestige Wealth Ordinary or give up 68.89% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 73.33% |
| Values | Daily Returns |
Amkor Technology vs. Prestige Wealth Ordinary
Performance |
| Timeline |
| Amkor Technology |
| Prestige Wealth Ordinary |
Amkor Technology and Prestige Wealth Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amkor Technology and Prestige Wealth
The main advantage of trading using opposite Amkor Technology and Prestige Wealth positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amkor Technology position performs unexpectedly, Prestige Wealth 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 Prestige Wealth will offset losses from the drop in Prestige Wealth's long position.| Amkor Technology vs. Power Integrations | Amkor Technology vs. Diodes Incorporated | Amkor Technology vs. MACOM Technology Solutions | Amkor Technology vs. Cirrus Logic |
| Prestige Wealth vs. Valneva SE ADR | Prestige Wealth vs. Chipotle Mexican Grill | Prestige Wealth vs. Amkor Technology | Prestige Wealth vs. Biglari Holdings |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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