Correlation Between Jacquet Metal and Amkor Technology
Can any of the company-specific risk be diversified away by investing in both Jacquet Metal 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 Jacquet Metal and Amkor Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Jacquet Metal Service and Amkor Technology, you can compare the effects of market volatilities on Jacquet Metal 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 Jacquet Metal with a short position of Amkor Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jacquet Metal and Amkor Technology.
Diversification Opportunities for Jacquet Metal and Amkor Technology
-0.04 | Correlation Coefficient |
Good diversification
The 3 months correlation between Jacquet and Amkor is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding Jacquet Metal Service and Amkor Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amkor Technology and Jacquet Metal 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 Jacquet Metal Service 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 Jacquet Metal i.e., Jacquet Metal and Amkor Technology go up and down completely randomly.
Pair Corralation between Jacquet Metal and Amkor Technology
Assuming the 90 days horizon Jacquet Metal Service is expected to generate 0.5 times more return on investment than Amkor Technology. However, Jacquet Metal Service is 1.99 times less risky than Amkor Technology. It trades about -0.18 of its potential returns per unit of risk. Amkor Technology is currently generating about -0.11 per unit of risk. If you would invest 1,642 in Jacquet Metal Service on August 29, 2024 and sell it today you would lose (94.00) from holding Jacquet Metal Service or give up 5.72% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jacquet Metal Service vs. Amkor Technology
Performance |
| Timeline |
| Jacquet Metal Service |
| Amkor Technology |
Jacquet Metal and Amkor Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jacquet Metal and Amkor Technology
The main advantage of trading using opposite Jacquet Metal and Amkor Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jacquet Metal 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.| Jacquet Metal vs. Marie Brizard Wine | Jacquet Metal vs. Treasury Wine Estates | Jacquet Metal vs. GEELY AUTOMOBILE | Jacquet Metal vs. Gol Intelligent Airlines |
| 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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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