Correlation Between Amkor Technology and WEBTOON Entertainment
Can any of the company-specific risk be diversified away by investing in both Amkor Technology and WEBTOON Entertainment 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 WEBTOON Entertainment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Amkor Technology and WEBTOON Entertainment Common, you can compare the effects of market volatilities on Amkor Technology and WEBTOON Entertainment 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 WEBTOON Entertainment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amkor Technology and WEBTOON Entertainment.
Diversification Opportunities for Amkor Technology and WEBTOON Entertainment
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Amkor and WEBTOON is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding Amkor Technology and WEBTOON Entertainment Common in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WEBTOON Entertainment 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 WEBTOON Entertainment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of WEBTOON Entertainment has no effect on the direction of Amkor Technology i.e., Amkor Technology and WEBTOON Entertainment go up and down completely randomly.
Pair Corralation between Amkor Technology and WEBTOON Entertainment
Given the investment horizon of 90 days Amkor Technology is expected to under-perform the WEBTOON Entertainment. But the stock apears to be less risky and, when comparing its historical volatility, Amkor Technology is 1.6 times less risky than WEBTOON Entertainment. The stock trades about -0.12 of its potential returns per unit of risk. The WEBTOON Entertainment Common is currently generating about -0.03 of returns per unit of risk over similar time horizon. If you would invest 1,355 in WEBTOON Entertainment Common on August 23, 2024 and sell it today you would lose (174.00) from holding WEBTOON Entertainment Common or give up 12.84% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Amkor Technology vs. WEBTOON Entertainment Common
Performance |
| Timeline |
| Amkor Technology |
| WEBTOON Entertainment |
Amkor Technology and WEBTOON Entertainment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amkor Technology and WEBTOON Entertainment
The main advantage of trading using opposite Amkor Technology and WEBTOON Entertainment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amkor Technology position performs unexpectedly, WEBTOON Entertainment 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 WEBTOON Entertainment will offset losses from the drop in WEBTOON Entertainment's long position.| Amkor Technology vs. Power Integrations | Amkor Technology vs. Diodes Incorporated | Amkor Technology vs. MACOM Technology Solutions | Amkor Technology vs. Cirrus Logic |
| WEBTOON Entertainment vs. Integral Ad Science | WEBTOON Entertainment vs. BOS Better Online | WEBTOON Entertainment vs. National CineMedia | WEBTOON Entertainment vs. JD Sports Fashion |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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