Correlation Between SCANDMEDICAL SOLDK-040 and Amkor Technology
Can any of the company-specific risk be diversified away by investing in both SCANDMEDICAL SOLDK-040 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 SCANDMEDICAL SOLDK-040 and Amkor Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SCANDMEDICAL SOLDK 040 and Amkor Technology, you can compare the effects of market volatilities on SCANDMEDICAL SOLDK-040 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 SCANDMEDICAL SOLDK-040 with a short position of Amkor Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of SCANDMEDICAL SOLDK-040 and Amkor Technology.
Diversification Opportunities for SCANDMEDICAL SOLDK-040 and Amkor Technology
0.3 | Correlation Coefficient |
Weak diversification
The 3 months correlation between SCANDMEDICAL and Amkor is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding SCANDMEDICAL SOLDK 040 and Amkor Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amkor Technology and SCANDMEDICAL SOLDK-040 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 SCANDMEDICAL SOLDK 040 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 SCANDMEDICAL SOLDK-040 i.e., SCANDMEDICAL SOLDK-040 and Amkor Technology go up and down completely randomly.
Pair Corralation between SCANDMEDICAL SOLDK-040 and Amkor Technology
Assuming the 90 days horizon SCANDMEDICAL SOLDK-040 is expected to generate 12.68 times less return on investment than Amkor Technology. In addition to that, SCANDMEDICAL SOLDK-040 is 1.74 times more volatile than Amkor Technology. It trades about 0.0 of its total potential returns per unit of risk. Amkor Technology is currently generating about 0.07 per unit of volatility. If you would invest 2,378 in Amkor Technology on September 3, 2024 and sell it today you would earn a total of 72.00 from holding Amkor Technology or generate 3.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
SCANDMEDICAL SOLDK 040 vs. Amkor Technology
Performance |
| Timeline |
| SCANDMEDICAL SOLDK 040 |
| Amkor Technology |
SCANDMEDICAL SOLDK-040 and Amkor Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SCANDMEDICAL SOLDK-040 and Amkor Technology
The main advantage of trading using opposite SCANDMEDICAL SOLDK-040 and Amkor Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SCANDMEDICAL SOLDK-040 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.| SCANDMEDICAL SOLDK-040 vs. Stryker | SCANDMEDICAL SOLDK-040 vs. Align Technology | SCANDMEDICAL SOLDK-040 vs. Insulet | SCANDMEDICAL SOLDK-040 vs. Superior Plus Corp |
| Amkor Technology vs. NVIDIA | Amkor Technology vs. Taiwan Semiconductor Manufacturing | Amkor Technology vs. Advanced Micro Devices | 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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