Correlation Between HomeToGo and Amkor Technology
Can any of the company-specific risk be diversified away by investing in both HomeToGo 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 HomeToGo and Amkor Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between HomeToGo SE and Amkor Technology, you can compare the effects of market volatilities on HomeToGo 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 HomeToGo with a short position of Amkor Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of HomeToGo and Amkor Technology.
Diversification Opportunities for HomeToGo and Amkor Technology
-0.52 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between HomeToGo and Amkor is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding HomeToGo SE and Amkor Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amkor Technology and HomeToGo 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 HomeToGo SE 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 HomeToGo i.e., HomeToGo and Amkor Technology go up and down completely randomly.
Pair Corralation between HomeToGo and Amkor Technology
Assuming the 90 days trading horizon HomeToGo SE is expected to generate 1.07 times more return on investment than Amkor Technology. However, HomeToGo is 1.07 times more volatile than Amkor Technology. It trades about 0.11 of its potential returns per unit of risk. Amkor Technology is currently generating about -0.1 per unit of risk. If you would invest 181.00 in HomeToGo SE on September 2, 2024 and sell it today you would earn a total of 34.00 from holding HomeToGo SE or generate 18.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
HomeToGo SE vs. Amkor Technology
Performance |
| Timeline |
| HomeToGo SE |
| Amkor Technology |
HomeToGo and Amkor Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HomeToGo and Amkor Technology
The main advantage of trading using opposite HomeToGo and Amkor Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HomeToGo 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.| HomeToGo vs. LG Display Co | HomeToGo vs. ANGLER GAMING PLC | HomeToGo vs. QINGCI GAMES INC | HomeToGo vs. GameStop 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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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