Correlation Between Amkor Technology and Meiwu Technology
Can any of the company-specific risk be diversified away by investing in both Amkor Technology and Meiwu Technology 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 Meiwu Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Amkor Technology and Meiwu Technology Co, you can compare the effects of market volatilities on Amkor Technology and Meiwu Technology 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 Meiwu Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amkor Technology and Meiwu Technology.
Diversification Opportunities for Amkor Technology and Meiwu Technology
0.34 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Amkor and Meiwu is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding Amkor Technology and Meiwu Technology Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Meiwu Technology 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 Meiwu Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Meiwu Technology has no effect on the direction of Amkor Technology i.e., Amkor Technology and Meiwu Technology go up and down completely randomly.
Pair Corralation between Amkor Technology and Meiwu Technology
Given the investment horizon of 90 days Amkor Technology is expected to under-perform the Meiwu Technology. But the stock apears to be less risky and, when comparing its historical volatility, Amkor Technology is 1.39 times less risky than Meiwu Technology. The stock trades about -0.2 of its potential returns per unit of risk. The Meiwu Technology Co is currently generating about 0.24 of returns per unit of risk over similar time horizon. If you would invest 81.00 in Meiwu Technology Co on August 29, 2024 and sell it today you would earn a total of 15.00 from holding Meiwu Technology Co or generate 18.52% 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. Meiwu Technology Co
Performance |
| Timeline |
| Amkor Technology |
| Meiwu Technology |
Amkor Technology and Meiwu Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amkor Technology and Meiwu Technology
The main advantage of trading using opposite Amkor Technology and Meiwu Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amkor Technology position performs unexpectedly, Meiwu Technology 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 Meiwu Technology will offset losses from the drop in Meiwu Technology's long position.| Amkor Technology vs. Power Integrations | Amkor Technology vs. Diodes Incorporated | Amkor Technology vs. MACOM Technology Solutions | Amkor Technology vs. Cirrus Logic |
| Meiwu Technology vs. MOGU Inc | Meiwu Technology vs. iPower Inc | Meiwu Technology vs. Jeffs Brands | Meiwu Technology vs. Kidpik 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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
Other Complementary Tools
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Money Managers Screen money managers from public funds and ETFs managed around the world |