Correlation Between BOS BETTER and Amkor Technology
Can any of the company-specific risk be diversified away by investing in both BOS BETTER and Amkor 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 BOS BETTER and Amkor Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BOS BETTER ONLINE and Amkor Technology, you can compare the effects of market volatilities on BOS BETTER and Amkor 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 BOS BETTER with a short position of Amkor Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of BOS BETTER and Amkor Technology.
Diversification Opportunities for BOS BETTER and Amkor Technology
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between BOS and Amkor is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding BOS BETTER ONLINE and Amkor Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amkor Technology and BOS BETTER 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 BOS BETTER ONLINE are associated (or correlated) with Amkor Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amkor Technology has no effect on the direction of BOS BETTER i.e., BOS BETTER and Amkor Technology go up and down completely randomly.
Pair Corralation between BOS BETTER and Amkor Technology
If you would invest 2,493 in Amkor Technology on September 13, 2024 and sell it today you would earn a total of 28.00 from holding Amkor Technology or generate 1.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
BOS BETTER ONLINE vs. Amkor Technology
Performance |
| Timeline |
| BOS BETTER ONLINE |
| Amkor Technology |
BOS BETTER and Amkor Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BOS BETTER and Amkor Technology
The main advantage of trading using opposite BOS BETTER and Amkor Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BOS BETTER position performs unexpectedly, Amkor 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 Amkor Technology will offset losses from the drop in Amkor Technology's long position.The idea behind BOS BETTER ONLINE and Amkor Technology pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Amkor Technology vs. Taiwan Semiconductor Manufacturing | Amkor Technology vs. Broadcom | Amkor Technology vs. Superior Plus Corp | Amkor Technology vs. SIVERS SEMICONDUCTORS AB |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
Other Complementary Tools
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets |