Correlation Between ENEL Societa and Amkor Technology
Can any of the company-specific risk be diversified away by investing in both ENEL Societa 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 ENEL Societa and Amkor Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ENEL Societa per and Amkor Technology, you can compare the effects of market volatilities on ENEL Societa 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 ENEL Societa with a short position of Amkor Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of ENEL Societa and Amkor Technology.
Diversification Opportunities for ENEL Societa and Amkor Technology
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between ENEL and Amkor is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding ENEL Societa per and Amkor Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amkor Technology and ENEL Societa 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 ENEL Societa per 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 ENEL Societa i.e., ENEL Societa and Amkor Technology go up and down completely randomly.
Pair Corralation between ENEL Societa and Amkor Technology
Assuming the 90 days horizon ENEL Societa per is expected to generate 0.45 times more return on investment than Amkor Technology. However, ENEL Societa per is 2.21 times less risky than Amkor Technology. It trades about 0.07 of its potential returns per unit of risk. Amkor Technology is currently generating about 0.02 per unit of risk. If you would invest 473.00 in ENEL Societa per on September 14, 2024 and sell it today you would earn a total of 242.00 from holding ENEL Societa per or generate 51.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 99.8% |
| Values | Daily Returns |
ENEL Societa per vs. Amkor Technology
Performance |
| Timeline |
| ENEL Societa per |
| Amkor Technology |
ENEL Societa and Amkor Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ENEL Societa and Amkor Technology
The main advantage of trading using opposite ENEL Societa and Amkor Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ENEL Societa 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.| ENEL Societa vs. Amkor Technology | ENEL Societa vs. Acm Research | ENEL Societa vs. Valneva SE ADR | ENEL Societa vs. Noble plc |
| 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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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