Correlation Between Caseys General and Amkor Technology
Can any of the company-specific risk be diversified away by investing in both Caseys General 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 Caseys General and Amkor Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Caseys General Stores and Amkor Technology, you can compare the effects of market volatilities on Caseys General 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 Caseys General with a short position of Amkor Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Caseys General and Amkor Technology.
Diversification Opportunities for Caseys General and Amkor Technology
-0.73 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Caseys and Amkor is -0.73. Overlapping area represents the amount of risk that can be diversified away by holding Caseys General Stores and Amkor Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amkor Technology and Caseys General 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 Caseys General Stores 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 Caseys General i.e., Caseys General and Amkor Technology go up and down completely randomly.
Pair Corralation between Caseys General and Amkor Technology
Assuming the 90 days trading horizon Caseys General Stores is expected to generate 0.56 times more return on investment than Amkor Technology. However, Caseys General Stores is 1.78 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 0.02 per unit of risk. If you would invest 25,449 in Caseys General Stores on September 14, 2024 and sell it today you would earn a total of 14,951 from holding Caseys General Stores or generate 58.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 99.64% |
| Values | Daily Returns |
Caseys General Stores vs. Amkor Technology
Performance |
| Timeline |
| Caseys General Stores |
| Amkor Technology |
Caseys General and Amkor Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Caseys General and Amkor Technology
The main advantage of trading using opposite Caseys General and Amkor Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Caseys General 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.| Caseys General vs. Apple Inc | Caseys General vs. Apple Inc | Caseys General vs. Apple Inc | Caseys General vs. Apple Inc |
| 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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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