Correlation Between Amkor Technology and Radcom
Can any of the company-specific risk be diversified away by investing in both Amkor Technology and Radcom 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 Radcom into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Amkor Technology and Radcom, you can compare the effects of market volatilities on Amkor Technology and Radcom 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 Radcom. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amkor Technology and Radcom.
Diversification Opportunities for Amkor Technology and Radcom
-0.6 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Amkor and Radcom is -0.6. Overlapping area represents the amount of risk that can be diversified away by holding Amkor Technology and Radcom in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Radcom 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 Radcom. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Radcom has no effect on the direction of Amkor Technology i.e., Amkor Technology and Radcom go up and down completely randomly.
Pair Corralation between Amkor Technology and Radcom
Given the investment horizon of 90 days Amkor Technology is expected to generate 2.07 times less return on investment than Radcom. In addition to that, Amkor Technology is 1.07 times more volatile than Radcom. It trades about 0.01 of its total potential returns per unit of risk. Radcom is currently generating about 0.03 per unit of volatility. If you would invest 1,025 in Radcom on August 29, 2024 and sell it today you would earn a total of 204.00 from holding Radcom or generate 19.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Amkor Technology vs. Radcom
Performance |
| Timeline |
| Amkor Technology |
| Radcom |
Amkor Technology and Radcom Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amkor Technology and Radcom
The main advantage of trading using opposite Amkor Technology and Radcom positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amkor Technology position performs unexpectedly, Radcom 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 Radcom will offset losses from the drop in Radcom's long position.| Amkor Technology vs. Power Integrations | Amkor Technology vs. Diodes Incorporated | Amkor Technology vs. MACOM Technology Solutions | Amkor Technology vs. Cirrus Logic |
| Radcom vs. Shenandoah Telecommunications Co | Radcom vs. Anterix | Radcom vs. SK Telecom Co | Radcom vs. Liberty Broadband Srs |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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