Correlation Between MSP Recovery and Amkor Technology
Can any of the company-specific risk be diversified away by investing in both MSP Recovery 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 MSP Recovery and Amkor Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MSP Recovery and Amkor Technology, you can compare the effects of market volatilities on MSP Recovery 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 MSP Recovery with a short position of Amkor Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of MSP Recovery and Amkor Technology.
Diversification Opportunities for MSP Recovery and Amkor Technology
-0.07 | Correlation Coefficient |
Good diversification
The 3 months correlation between MSP and Amkor is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding MSP Recovery and Amkor Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amkor Technology and MSP Recovery 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 MSP Recovery 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 MSP Recovery i.e., MSP Recovery and Amkor Technology go up and down completely randomly.
Pair Corralation between MSP Recovery and Amkor Technology
Assuming the 90 days horizon MSP Recovery is expected to generate 47.04 times more return on investment than Amkor Technology. However, MSP Recovery is 47.04 times more volatile than Amkor Technology. It trades about 0.15 of its potential returns per unit of risk. Amkor Technology is currently generating about 0.01 per unit of risk. If you would invest 130.00 in MSP Recovery on August 26, 2024 and sell it today you would lose (122.54) from holding MSP Recovery or give up 94.26% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 50.3% |
| Values | Daily Returns |
MSP Recovery vs. Amkor Technology
Performance |
| Timeline |
| MSP Recovery |
| Amkor Technology |
MSP Recovery and Amkor Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MSP Recovery and Amkor Technology
The main advantage of trading using opposite MSP Recovery and Amkor Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MSP Recovery 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.| MSP Recovery vs. Amkor Technology | MSP Recovery vs. Radcom | MSP Recovery vs. Uber Technologies | MSP Recovery vs. BioNTech SE |
| Amkor Technology vs. Teradyne | Amkor Technology vs. IPG Photonics | Amkor Technology vs. Applied Materials |
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 CEOs Directory module to screen CEOs from public companies around the world.
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