Correlation Between Monument Mining and Amkor Technology
Can any of the company-specific risk be diversified away by investing in both Monument Mining 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 Monument Mining and Amkor Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Monument Mining Limited and Amkor Technology, you can compare the effects of market volatilities on Monument Mining 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 Monument Mining with a short position of Amkor Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Monument Mining and Amkor Technology.
Diversification Opportunities for Monument Mining and Amkor Technology
-0.6 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Monument and Amkor is -0.6. Overlapping area represents the amount of risk that can be diversified away by holding Monument Mining Limited and Amkor Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amkor Technology and Monument Mining 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 Monument Mining Limited 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 Monument Mining i.e., Monument Mining and Amkor Technology go up and down completely randomly.
Pair Corralation between Monument Mining and Amkor Technology
Assuming the 90 days trading horizon Monument Mining Limited is expected to generate 2.71 times more return on investment than Amkor Technology. However, Monument Mining is 2.71 times more volatile than Amkor Technology. It trades about 0.26 of its potential returns per unit of risk. Amkor Technology is currently generating about 0.11 per unit of risk. If you would invest 17.00 in Monument Mining Limited on October 10, 2024 and sell it today you would earn a total of 4.00 from holding Monument Mining Limited or generate 23.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Monument Mining Limited vs. Amkor Technology
Performance |
| Timeline |
| Monument Mining |
| Amkor Technology |
Monument Mining and Amkor Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Monument Mining and Amkor Technology
The main advantage of trading using opposite Monument Mining and Amkor Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Monument Mining 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.| Monument Mining vs. ACCSYS TECHPLC EO | Monument Mining vs. CN MODERN DAIRY | Monument Mining vs. Sunny Optical Technology | Monument Mining vs. VELA TECHNOLPLC LS 0001 |
| Amkor Technology vs. ALGOMA STEEL GROUP | Amkor Technology vs. PennantPark Investment | Amkor Technology vs. Japan Asia Investment | Amkor Technology vs. SLR Investment Corp |
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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