Correlation Between Nano Labs and Amkor Technology
Can any of the company-specific risk be diversified away by investing in both Nano Labs 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 Nano Labs and Amkor Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nano Labs and Amkor Technology, you can compare the effects of market volatilities on Nano Labs 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 Nano Labs with a short position of Amkor Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nano Labs and Amkor Technology.
Diversification Opportunities for Nano Labs and Amkor Technology
-0.06 | Correlation Coefficient |
Good diversification
The 3 months correlation between Nano and Amkor is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding Nano Labs and Amkor Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amkor Technology and Nano Labs 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 Nano Labs 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 Nano Labs i.e., Nano Labs and Amkor Technology go up and down completely randomly.
Pair Corralation between Nano Labs and Amkor Technology
Allowing for the 90-day total investment horizon Nano Labs is expected to generate 4.31 times more return on investment than Amkor Technology. However, Nano Labs is 4.31 times more volatile than Amkor Technology. It trades about 0.04 of its potential returns per unit of risk. Amkor Technology is currently generating about 0.01 per unit of risk. If you would invest 1,350 in Nano Labs on October 21, 2024 and sell it today you would lose (579.00) from holding Nano Labs or give up 42.89% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nano Labs vs. Amkor Technology
Performance |
| Timeline |
| Nano Labs |
| Amkor Technology |
Nano Labs and Amkor Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nano Labs and Amkor Technology
The main advantage of trading using opposite Nano Labs and Amkor Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nano Labs 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.| Nano Labs vs. SEALSQ Corp | Nano Labs vs. GSI Technology | Nano Labs vs. SemiLEDS | Nano Labs vs. ChipMOS Technologies |
| 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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
Other Complementary Tools
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets |