Correlation Between NAKED WINES and Amkor Technology
Can any of the company-specific risk be diversified away by investing in both NAKED WINES 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 NAKED WINES and Amkor Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NAKED WINES PLC and Amkor Technology, you can compare the effects of market volatilities on NAKED WINES 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 NAKED WINES with a short position of Amkor Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of NAKED WINES and Amkor Technology.
Diversification Opportunities for NAKED WINES and Amkor Technology
0.09 | Correlation Coefficient |
Significant diversification
The 3 months correlation between NAKED and Amkor is 0.09. Overlapping area represents the amount of risk that can be diversified away by holding NAKED WINES PLC and Amkor Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amkor Technology and NAKED WINES 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 NAKED WINES PLC 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 NAKED WINES i.e., NAKED WINES and Amkor Technology go up and down completely randomly.
Pair Corralation between NAKED WINES and Amkor Technology
Assuming the 90 days horizon NAKED WINES PLC is expected to under-perform the Amkor Technology. In addition to that, NAKED WINES is 1.27 times more volatile than Amkor Technology. It trades about -0.15 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 | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
NAKED WINES PLC vs. Amkor Technology
Performance |
| Timeline |
| NAKED WINES PLC |
| Amkor Technology |
NAKED WINES and Amkor Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with NAKED WINES and Amkor Technology
The main advantage of trading using opposite NAKED WINES and Amkor Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NAKED WINES 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.| NAKED WINES vs. CHINA TONTINE WINES | NAKED WINES vs. Superior Plus Corp | NAKED WINES vs. NMI Holdings | NAKED WINES vs. Origin Agritech |
| 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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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