Correlation Between BrightSpring Health and Amkor Technology
Can any of the company-specific risk be diversified away by investing in both BrightSpring Health 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 BrightSpring Health and Amkor Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BrightSpring Health Services, and Amkor Technology, you can compare the effects of market volatilities on BrightSpring Health 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 BrightSpring Health with a short position of Amkor Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of BrightSpring Health and Amkor Technology.
Diversification Opportunities for BrightSpring Health and Amkor Technology
-0.76 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between BrightSpring and Amkor is -0.76. Overlapping area represents the amount of risk that can be diversified away by holding BrightSpring Health Services, and Amkor Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amkor Technology and BrightSpring Health 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 BrightSpring Health Services, 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 BrightSpring Health i.e., BrightSpring Health and Amkor Technology go up and down completely randomly.
Pair Corralation between BrightSpring Health and Amkor Technology
Assuming the 90 days horizon BrightSpring Health Services, is expected to generate 0.76 times more return on investment than Amkor Technology. However, BrightSpring Health Services, is 1.31 times less risky than Amkor Technology. It trades about 0.11 of its potential returns per unit of risk. Amkor Technology is currently generating about 0.01 per unit of risk. If you would invest 4,351 in BrightSpring Health Services, on September 3, 2024 and sell it today you would earn a total of 2,613 from holding BrightSpring Health Services, or generate 60.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 45.26% |
| Values | Daily Returns |
BrightSpring Health Services, vs. Amkor Technology
Performance |
| Timeline |
| BrightSpring Health |
| Amkor Technology |
BrightSpring Health and Amkor Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BrightSpring Health and Amkor Technology
The main advantage of trading using opposite BrightSpring Health and Amkor Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BrightSpring Health 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.| BrightSpring Health vs. Dine Brands Global | BrightSpring Health vs. ArcelorMittal SA ADR | BrightSpring Health vs. RCI Hospitality Holdings | BrightSpring Health vs. Sweetgreen |
| Amkor Technology vs. Power Integrations | Amkor Technology vs. Diodes Incorporated | Amkor Technology vs. MACOM Technology Solutions | Amkor Technology vs. Cirrus Logic |
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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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