Correlation Between Amkor Technology and Usio
Can any of the company-specific risk be diversified away by investing in both Amkor Technology and Usio 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 Usio into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Amkor Technology and Usio Inc, you can compare the effects of market volatilities on Amkor Technology and Usio 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 Usio. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amkor Technology and Usio.
Diversification Opportunities for Amkor Technology and Usio
0.1 | Correlation Coefficient |
Average diversification
The 3 months correlation between Amkor and Usio is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding Amkor Technology and Usio Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Usio Inc 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 Usio. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Usio Inc has no effect on the direction of Amkor Technology i.e., Amkor Technology and Usio go up and down completely randomly.
Pair Corralation between Amkor Technology and Usio
Given the investment horizon of 90 days Amkor Technology is expected to under-perform the Usio. In addition to that, Amkor Technology is 1.28 times more volatile than Usio Inc. It trades about -0.11 of its total potential returns per unit of risk. Usio Inc is currently generating about -0.01 per unit of volatility. If you would invest 150.00 in Usio Inc on August 25, 2024 and sell it today you would lose (3.00) from holding Usio Inc or give up 2.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Amkor Technology vs. Usio Inc
Performance |
| Timeline |
| Amkor Technology |
| Usio Inc |
Amkor Technology and Usio Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amkor Technology and Usio
The main advantage of trading using opposite Amkor Technology and Usio positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amkor Technology position performs unexpectedly, Usio 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 Usio will offset losses from the drop in Usio's long position.| Amkor Technology vs. Teradyne | Amkor Technology vs. Ichor Holdings | Amkor Technology vs. Amtech Systems | Amkor Technology vs. Veeco Instruments |
| Usio vs. Appen Limited | Usio vs. Value Exchange International | Usio vs. Appen Limited | Usio vs. Deveron Corp |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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