Correlation Between FEMALE HEALTH and Amkor Technology
Can any of the company-specific risk be diversified away by investing in both FEMALE HEALTH 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 FEMALE HEALTH and Amkor Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between FEMALE HEALTH and Amkor Technology, you can compare the effects of market volatilities on FEMALE HEALTH 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 FEMALE HEALTH with a short position of Amkor Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of FEMALE HEALTH and Amkor Technology.
Diversification Opportunities for FEMALE HEALTH and Amkor Technology
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between FEMALE and Amkor is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding FEMALE HEALTH and Amkor Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amkor Technology and FEMALE HEALTH 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 FEMALE HEALTH 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 FEMALE HEALTH i.e., FEMALE HEALTH and Amkor Technology go up and down completely randomly.
Pair Corralation between FEMALE HEALTH and Amkor Technology
Assuming the 90 days trading horizon FEMALE HEALTH is expected to under-perform the Amkor Technology. In addition to that, FEMALE HEALTH is 1.45 times more volatile than Amkor Technology. It trades about -0.16 of its total potential returns per unit of risk. Amkor Technology is currently generating about -0.11 per unit of volatility. If you would invest 2,760 in Amkor Technology on August 28, 2024 and sell it today you would lose (207.00) from holding Amkor Technology or give up 7.5% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
FEMALE HEALTH vs. Amkor Technology
Performance |
| Timeline |
| FEMALE HEALTH |
| Amkor Technology |
FEMALE HEALTH and Amkor Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FEMALE HEALTH and Amkor Technology
The main advantage of trading using opposite FEMALE HEALTH and Amkor Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FEMALE HEALTH 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.| FEMALE HEALTH vs. ACCSYS TECHPLC EO | FEMALE HEALTH vs. Iridium Communications | FEMALE HEALTH vs. Amkor Technology | FEMALE HEALTH vs. Shenandoah Telecommunications |
| Amkor Technology vs. NVIDIA | Amkor Technology vs. NVIDIA | Amkor Technology vs. QUALCOMM Incorporated | Amkor Technology vs. Intel |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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