Correlation Between Cass Information and Amkor Technology
Can any of the company-specific risk be diversified away by investing in both Cass Information 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 Cass Information and Amkor Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cass Information Systems and Amkor Technology, you can compare the effects of market volatilities on Cass Information 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 Cass Information with a short position of Amkor Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cass Information and Amkor Technology.
Diversification Opportunities for Cass Information and Amkor Technology
-0.5 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Cass and Amkor is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding Cass Information Systems and Amkor Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amkor Technology and Cass Information 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 Cass Information Systems 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 Cass Information i.e., Cass Information and Amkor Technology go up and down completely randomly.
Pair Corralation between Cass Information and Amkor Technology
Assuming the 90 days horizon Cass Information Systems is expected to generate 0.66 times more return on investment than Amkor Technology. However, Cass Information Systems is 1.52 times less risky than Amkor Technology. It trades about 0.1 of its potential returns per unit of risk. Amkor Technology is currently generating about -0.11 per unit of risk. If you would invest 3,920 in Cass Information Systems on November 30, 2024 and sell it today you would earn a total of 240.00 from holding Cass Information Systems or generate 6.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cass Information Systems vs. Amkor Technology
Performance |
| Timeline |
| Cass Information Systems |
| Amkor Technology |
Cass Information and Amkor Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cass Information and Amkor Technology
The main advantage of trading using opposite Cass Information and Amkor Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cass Information 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.| Cass Information vs. Zijin Mining Group | Cass Information vs. ITALIAN WINE BRANDS | Cass Information vs. GRIFFIN MINING LTD | Cass Information vs. De Grey Mining |
| Amkor Technology vs. HK Electric Investments | Amkor Technology vs. MidCap Financial Investment | Amkor Technology vs. Aya Gold Silver | Amkor Technology vs. New Residential Investment |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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