Correlation Between Inter Parfums and Amkor Technology
Can any of the company-specific risk be diversified away by investing in both Inter Parfums 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 Inter Parfums and Amkor Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Inter Parfums and Amkor Technology, you can compare the effects of market volatilities on Inter Parfums 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 Inter Parfums with a short position of Amkor Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Inter Parfums and Amkor Technology.
Diversification Opportunities for Inter Parfums and Amkor Technology
-0.5 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Inter and Amkor is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding Inter Parfums and Amkor Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amkor Technology and Inter Parfums 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 Inter Parfums 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 Inter Parfums i.e., Inter Parfums and Amkor Technology go up and down completely randomly.
Pair Corralation between Inter Parfums and Amkor Technology
Given the investment horizon of 90 days Inter Parfums is expected to generate 0.61 times more return on investment than Amkor Technology. However, Inter Parfums is 1.64 times less risky than Amkor Technology. It trades about 0.08 of its potential returns per unit of risk. Amkor Technology is currently generating about -0.03 per unit of risk. If you would invest 11,498 in Inter Parfums on September 5, 2024 and sell it today you would earn a total of 2,228 from holding Inter Parfums or generate 19.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Inter Parfums vs. Amkor Technology
Performance |
| Timeline |
| Inter Parfums |
| Amkor Technology |
Inter Parfums and Amkor Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Inter Parfums and Amkor Technology
The main advantage of trading using opposite Inter Parfums and Amkor Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Inter Parfums 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.| Inter Parfums vs. J J Snack | Inter Parfums vs. John B Sanfilippo | Inter Parfums vs. Innospec | Inter Parfums vs. Independent Bank |
| Amkor Technology vs. NXP Semiconductors NV | Amkor Technology vs. Monolithic Power Systems | Amkor Technology vs. ON Semiconductor | Amkor Technology vs. GSI Technology |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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