Correlation Between CDN IMPERIAL and Amkor Technology
Can any of the company-specific risk be diversified away by investing in both CDN IMPERIAL 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 CDN IMPERIAL and Amkor Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CDN IMPERIAL BANK and Amkor Technology, you can compare the effects of market volatilities on CDN IMPERIAL 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 CDN IMPERIAL with a short position of Amkor Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of CDN IMPERIAL and Amkor Technology.
Diversification Opportunities for CDN IMPERIAL and Amkor Technology
-0.7 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between CDN and Amkor is -0.7. Overlapping area represents the amount of risk that can be diversified away by holding CDN IMPERIAL BANK and Amkor Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amkor Technology and CDN IMPERIAL 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 CDN IMPERIAL BANK 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 CDN IMPERIAL i.e., CDN IMPERIAL and Amkor Technology go up and down completely randomly.
Pair Corralation between CDN IMPERIAL and Amkor Technology
Assuming the 90 days trading horizon CDN IMPERIAL BANK is expected to generate 0.36 times more return on investment than Amkor Technology. However, CDN IMPERIAL BANK is 2.78 times less risky than Amkor Technology. It trades about 0.19 of its potential returns per unit of risk. Amkor Technology is currently generating about 0.01 per unit of risk. If you would invest 3,678 in CDN IMPERIAL BANK on September 4, 2024 and sell it today you would earn a total of 2,431 from holding CDN IMPERIAL BANK or generate 66.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 99.6% |
| Values | Daily Returns |
CDN IMPERIAL BANK vs. Amkor Technology
Performance |
| Timeline |
| CDN IMPERIAL BANK |
| Amkor Technology |
CDN IMPERIAL and Amkor Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CDN IMPERIAL and Amkor Technology
The main advantage of trading using opposite CDN IMPERIAL and Amkor Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CDN IMPERIAL 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.| CDN IMPERIAL vs. TOTAL GABON | CDN IMPERIAL vs. Walgreens Boots Alliance | CDN IMPERIAL vs. Peak Resources Limited |
| Amkor Technology vs. NVIDIA | Amkor Technology vs. Taiwan Semiconductor Manufacturing | Amkor Technology vs. Advanced Micro Devices | Amkor Technology vs. Intel |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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