Correlation Between Computer and Amkor Technology
Can any of the company-specific risk be diversified away by investing in both Computer 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 Computer and Amkor Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Computer And Technologies and Amkor Technology, you can compare the effects of market volatilities on Computer 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 Computer with a short position of Amkor Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Computer and Amkor Technology.
Diversification Opportunities for Computer and Amkor Technology
-0.14 | Correlation Coefficient |
Good diversification
The 3 months correlation between Computer and Amkor is -0.14. Overlapping area represents the amount of risk that can be diversified away by holding Computer And Technologies and Amkor Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amkor Technology and Computer 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 Computer And Technologies 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 Computer i.e., Computer and Amkor Technology go up and down completely randomly.
Pair Corralation between Computer and Amkor Technology
Assuming the 90 days horizon Computer And Technologies is expected to generate 1.19 times more return on investment than Amkor Technology. However, Computer is 1.19 times more volatile than Amkor Technology. It trades about 0.06 of its potential returns per unit of risk. Amkor Technology is currently generating about 0.02 per unit of risk. If you would invest 9.15 in Computer And Technologies on August 30, 2024 and sell it today you would earn a total of 9.85 from holding Computer And Technologies or generate 107.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Computer And Technologies vs. Amkor Technology
Performance |
| Timeline |
| Computer And Technologies |
| Amkor Technology |
Computer and Amkor Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Computer and Amkor Technology
The main advantage of trading using opposite Computer and Amkor Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Computer 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.| Computer vs. Accenture plc | Computer vs. International Business Machines | Computer vs. Superior Plus Corp | Computer vs. SIVERS SEMICONDUCTORS AB |
| Amkor Technology vs. NVIDIA | Amkor Technology vs. Texas Instruments Incorporated | Amkor Technology vs. Advanced Micro Devices | Amkor Technology vs. Advanced Micro Devices |
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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