Correlation Between RETAIL FOOD and Amkor Technology
Can any of the company-specific risk be diversified away by investing in both RETAIL FOOD 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 RETAIL FOOD and Amkor Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between RETAIL FOOD GROUP and Amkor Technology, you can compare the effects of market volatilities on RETAIL FOOD 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 RETAIL FOOD with a short position of Amkor Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of RETAIL FOOD and Amkor Technology.
Diversification Opportunities for RETAIL FOOD and Amkor Technology
-0.3 | Correlation Coefficient |
Very good diversification
The 3 months correlation between RETAIL and Amkor is -0.3. Overlapping area represents the amount of risk that can be diversified away by holding RETAIL FOOD GROUP and Amkor Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amkor Technology and RETAIL FOOD 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 RETAIL FOOD GROUP 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 RETAIL FOOD i.e., RETAIL FOOD and Amkor Technology go up and down completely randomly.
Pair Corralation between RETAIL FOOD and Amkor Technology
Assuming the 90 days trading horizon RETAIL FOOD GROUP is expected to under-perform the Amkor Technology. In addition to that, RETAIL FOOD is 1.97 times more volatile than Amkor Technology. It trades about -0.31 of its total potential returns per unit of risk. Amkor Technology is currently generating about 0.05 per unit of volatility. If you would invest 2,524 in Amkor Technology on October 13, 2024 and sell it today you would earn a total of 31.00 from holding Amkor Technology or generate 1.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
RETAIL FOOD GROUP vs. Amkor Technology
Performance |
| Timeline |
| RETAIL FOOD GROUP |
| Amkor Technology |
RETAIL FOOD and Amkor Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with RETAIL FOOD and Amkor Technology
The main advantage of trading using opposite RETAIL FOOD and Amkor Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if RETAIL FOOD 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.| RETAIL FOOD vs. SILICON LABORATOR | RETAIL FOOD vs. Sun Life Financial | RETAIL FOOD vs. Synovus Financial Corp | RETAIL FOOD vs. JSC Halyk bank |
| Amkor Technology vs. RETAIL FOOD GROUP | Amkor Technology vs. Take Two Interactive Software | Amkor Technology vs. DXC Technology Co | Amkor Technology vs. Casio Computer CoLtd |
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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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