Correlation Between Evertz Technologies and Amkor Technology
Can any of the company-specific risk be diversified away by investing in both Evertz Technologies 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 Evertz Technologies and Amkor Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Evertz Technologies Limited and Amkor Technology, you can compare the effects of market volatilities on Evertz Technologies 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 Evertz Technologies with a short position of Amkor Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Evertz Technologies and Amkor Technology.
Diversification Opportunities for Evertz Technologies and Amkor Technology
0.34 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Evertz and Amkor is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding Evertz Technologies Limited and Amkor Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amkor Technology and Evertz Technologies 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 Evertz Technologies 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 Evertz Technologies i.e., Evertz Technologies and Amkor Technology go up and down completely randomly.
Pair Corralation between Evertz Technologies and Amkor Technology
Assuming the 90 days horizon Evertz Technologies Limited is expected to generate 1.46 times more return on investment than Amkor Technology. However, Evertz Technologies is 1.46 times more volatile than Amkor Technology. It trades about 0.02 of its potential returns per unit of risk. Amkor Technology is currently generating about 0.01 per unit of risk. If you would invest 926.00 in Evertz Technologies Limited on August 26, 2024 and sell it today you would lose (58.00) from holding Evertz Technologies Limited or give up 6.26% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 72.03% |
| Values | Daily Returns |
Evertz Technologies Limited vs. Amkor Technology
Performance |
| Timeline |
| Evertz Technologies |
| Amkor Technology |
Evertz Technologies and Amkor Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Evertz Technologies and Amkor Technology
The main advantage of trading using opposite Evertz Technologies and Amkor Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Evertz Technologies 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.| Evertz Technologies vs. Boxlight Corp Class | Evertz Technologies vs. Siyata Mobile | Evertz Technologies vs. ClearOne | Evertz Technologies vs. HUMANA INC |
| 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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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