Correlation Between NFT and Amkor Technology
Can any of the company-specific risk be diversified away by investing in both NFT 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 NFT and Amkor Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NFT Limited and Amkor Technology, you can compare the effects of market volatilities on NFT 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 NFT with a short position of Amkor Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of NFT and Amkor Technology.
Diversification Opportunities for NFT and Amkor Technology
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between NFT and Amkor is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding NFT Limited and Amkor Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amkor Technology and NFT 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 NFT Limited 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 NFT i.e., NFT and Amkor Technology go up and down completely randomly.
Pair Corralation between NFT and Amkor Technology
Allowing for the 90-day total investment horizon NFT is expected to generate 1.07 times less return on investment than Amkor Technology. In addition to that, NFT is 9.93 times more volatile than Amkor Technology. It trades about 0.01 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 2,600 in Amkor Technology on September 13, 2024 and sell it today you would earn a total of 69.00 from holding Amkor Technology or generate 2.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
NFT Limited vs. Amkor Technology
Performance |
| Timeline |
| NFT Limited |
| Amkor Technology |
NFT and Amkor Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with NFT and Amkor Technology
The main advantage of trading using opposite NFT and Amkor Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NFT 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.| NFT vs. KeyCorp | NFT vs. Fernhill Beverage | NFT vs. Compania Cervecerias Unidas | NFT vs. Thai Beverage PCL |
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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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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