Correlation Between Amkor Technology and Uber Technologies
Can any of the company-specific risk be diversified away by investing in both Amkor Technology and Uber Technologies 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 Uber Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Amkor Technology and Uber Technologies, you can compare the effects of market volatilities on Amkor Technology and Uber Technologies 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 Uber Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amkor Technology and Uber Technologies.
Diversification Opportunities for Amkor Technology and Uber Technologies
0.37 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Amkor and Uber is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding Amkor Technology and Uber Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Uber Technologies 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 Uber Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Uber Technologies has no effect on the direction of Amkor Technology i.e., Amkor Technology and Uber Technologies go up and down completely randomly.
Pair Corralation between Amkor Technology and Uber Technologies
Given the investment horizon of 90 days Amkor Technology is expected to generate 4.98 times less return on investment than Uber Technologies. In addition to that, Amkor Technology is 1.19 times more volatile than Uber Technologies. It trades about 0.02 of its total potential returns per unit of risk. Uber Technologies is currently generating about 0.1 per unit of volatility. If you would invest 2,655 in Uber Technologies on August 30, 2024 and sell it today you would earn a total of 4,507 from holding Uber Technologies or generate 169.76% 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. Uber Technologies
Performance |
| Timeline |
| Amkor Technology |
| Uber Technologies |
Amkor Technology and Uber Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amkor Technology and Uber Technologies
The main advantage of trading using opposite Amkor Technology and Uber Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amkor Technology position performs unexpectedly, Uber Technologies 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 Uber Technologies will offset losses from the drop in Uber Technologies' long position.| Amkor Technology vs. Power Integrations | Amkor Technology vs. Diodes Incorporated | Amkor Technology vs. MACOM Technology Solutions | Amkor Technology vs. Cirrus Logic |
| Uber Technologies vs. Zoom Video Communications | Uber Technologies vs. Snowflake | Uber Technologies vs. Workday | Uber Technologies vs. C3 Ai 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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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