Correlation Between Amkor Technology and Vestis
Can any of the company-specific risk be diversified away by investing in both Amkor Technology and Vestis 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 Vestis into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Amkor Technology and Vestis, you can compare the effects of market volatilities on Amkor Technology and Vestis 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 Vestis. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amkor Technology and Vestis.
Diversification Opportunities for Amkor Technology and Vestis
0.26 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Amkor and Vestis is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding Amkor Technology and Vestis in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vestis 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 Vestis. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vestis has no effect on the direction of Amkor Technology i.e., Amkor Technology and Vestis go up and down completely randomly.
Pair Corralation between Amkor Technology and Vestis
Given the investment horizon of 90 days Amkor Technology is expected to under-perform the Vestis. In addition to that, Amkor Technology is 1.25 times more volatile than Vestis. It trades about -0.03 of its total potential returns per unit of risk. Vestis is currently generating about 0.09 per unit of volatility. If you would invest 1,237 in Vestis on September 1, 2024 and sell it today you would earn a total of 371.00 from holding Vestis or generate 29.99% 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. Vestis
Performance |
| Timeline |
| Amkor Technology |
| Vestis |
Amkor Technology and Vestis Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amkor Technology and Vestis
The main advantage of trading using opposite Amkor Technology and Vestis positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amkor Technology position performs unexpectedly, Vestis 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 Vestis will offset losses from the drop in Vestis' long position.| Amkor Technology vs. NXP Semiconductors NV | Amkor Technology vs. GSI Technology | Amkor Technology vs. MaxLinear | Amkor Technology vs. Texas Instruments Incorporated |
| Vestis vs. Oatly Group AB | Vestis vs. Nascent Wine | Vestis vs. Willamette Valley Vineyards | Vestis vs. LithiumBank Resources 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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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