Correlation Between Cheche Group and Amkor Technology
Can any of the company-specific risk be diversified away by investing in both Cheche Group 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 Cheche Group and Amkor Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cheche Group Class and Amkor Technology, you can compare the effects of market volatilities on Cheche Group 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 Cheche Group with a short position of Amkor Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cheche Group and Amkor Technology.
Diversification Opportunities for Cheche Group and Amkor Technology
-0.61 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Cheche and Amkor is -0.61. Overlapping area represents the amount of risk that can be diversified away by holding Cheche Group Class and Amkor Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amkor Technology and Cheche Group 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 Cheche Group Class 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 Cheche Group i.e., Cheche Group and Amkor Technology go up and down completely randomly.
Pair Corralation between Cheche Group and Amkor Technology
Considering the 90-day investment horizon Cheche Group Class is expected to under-perform the Amkor Technology. In addition to that, Cheche Group is 2.03 times more volatile than Amkor Technology. It trades about -0.06 of its total potential returns per unit of risk. Amkor Technology is currently generating about -0.05 per unit of volatility. If you would invest 3,518 in Amkor Technology on December 2, 2024 and sell it today you would lose (1,408) from holding Amkor Technology or give up 40.02% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cheche Group Class vs. Amkor Technology
Performance |
| Timeline |
| Cheche Group Class |
| Amkor Technology |
Cheche Group and Amkor Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cheche Group and Amkor Technology
The main advantage of trading using opposite Cheche Group and Amkor Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cheche Group 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.| Cheche Group vs. Shenzhen Investment Holdings | Cheche Group vs. Black Mammoth Metals | Cheche Group vs. AG Mortgage Investment | Cheche Group vs. Highway Holdings Limited |
| 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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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