Correlation Between Knightscope and Amkor Technology
Can any of the company-specific risk be diversified away by investing in both Knightscope 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 Knightscope and Amkor Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Knightscope and Amkor Technology, you can compare the effects of market volatilities on Knightscope 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 Knightscope with a short position of Amkor Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Knightscope and Amkor Technology.
Diversification Opportunities for Knightscope and Amkor Technology
-0.73 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Knightscope and Amkor is -0.73. Overlapping area represents the amount of risk that can be diversified away by holding Knightscope and Amkor Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amkor Technology and Knightscope 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 Knightscope 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 Knightscope i.e., Knightscope and Amkor Technology go up and down completely randomly.
Pair Corralation between Knightscope and Amkor Technology
Given the investment horizon of 90 days Knightscope is expected to generate 5.69 times more return on investment than Amkor Technology. However, Knightscope is 5.69 times more volatile than Amkor Technology. It trades about 0.08 of its potential returns per unit of risk. Amkor Technology is currently generating about -0.13 per unit of risk. If you would invest 1,681 in Knightscope on August 30, 2024 and sell it today you would earn a total of 55.00 from holding Knightscope or generate 3.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Knightscope vs. Amkor Technology
Performance |
| Timeline |
| Knightscope |
| Amkor Technology |
Knightscope and Amkor Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Knightscope and Amkor Technology
The main advantage of trading using opposite Knightscope and Amkor Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Knightscope 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.| Knightscope vs. Fabrinet | Knightscope vs. Knowles Cor | Knightscope vs. Ubiquiti Networks | Knightscope vs. AmpliTech Group |
| Amkor Technology vs. Power Integrations | Amkor Technology vs. Diodes Incorporated | Amkor Technology vs. MACOM Technology Solutions | Amkor Technology vs. Cirrus Logic |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
Other Complementary Tools
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments |