Correlation Between Amkor Technology and Willamette Valley
Can any of the company-specific risk be diversified away by investing in both Amkor Technology and Willamette Valley 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 Willamette Valley into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Amkor Technology and Willamette Valley Vineyards, you can compare the effects of market volatilities on Amkor Technology and Willamette Valley 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 Willamette Valley. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amkor Technology and Willamette Valley.
Diversification Opportunities for Amkor Technology and Willamette Valley
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Amkor and Willamette is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Amkor Technology and Willamette Valley Vineyards in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Willamette Valley 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 Willamette Valley. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Willamette Valley has no effect on the direction of Amkor Technology i.e., Amkor Technology and Willamette Valley go up and down completely randomly.
Pair Corralation between Amkor Technology and Willamette Valley
Given the investment horizon of 90 days Amkor Technology is expected to generate 1.59 times more return on investment than Willamette Valley. However, Amkor Technology is 1.59 times more volatile than Willamette Valley Vineyards. It trades about 0.1 of its potential returns per unit of risk. Willamette Valley Vineyards is currently generating about -0.08 per unit of risk. If you would invest 2,555 in Amkor Technology on September 15, 2024 and sell it today you would earn a total of 99.00 from holding Amkor Technology or generate 3.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Amkor Technology vs. Willamette Valley Vineyards
Performance |
| Timeline |
| Amkor Technology |
| Willamette Valley |
Amkor Technology and Willamette Valley Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amkor Technology and Willamette Valley
The main advantage of trading using opposite Amkor Technology and Willamette Valley positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amkor Technology position performs unexpectedly, Willamette Valley 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 Willamette Valley will offset losses from the drop in Willamette Valley's long position.| Amkor Technology vs. ON Semiconductor | Amkor Technology vs. Globalfoundries | Amkor Technology vs. Wisekey International Holding | Amkor Technology vs. Nano Labs |
| Willamette Valley vs. Naked Wines plc | Willamette Valley vs. Andrew Peller Limited | Willamette Valley vs. Iconic Brands | Willamette Valley vs. Naked Wines plc |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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