Correlation Between PGE Corp and Amkor Technology
Can any of the company-specific risk be diversified away by investing in both PGE Corp 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 PGE Corp and Amkor Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PGE Corp and Amkor Technology, you can compare the effects of market volatilities on PGE Corp 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 PGE Corp with a short position of Amkor Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of PGE Corp and Amkor Technology.
Diversification Opportunities for PGE Corp and Amkor Technology
-0.73 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between PGE and Amkor is -0.73. Overlapping area represents the amount of risk that can be diversified away by holding PGE Corp and Amkor Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amkor Technology and PGE Corp 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 PGE Corp 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 PGE Corp i.e., PGE Corp and Amkor Technology go up and down completely randomly.
Pair Corralation between PGE Corp and Amkor Technology
Considering the 90-day investment horizon PGE Corp is expected to generate 0.4 times more return on investment than Amkor Technology. However, PGE Corp is 2.49 times less risky than Amkor Technology. It trades about 0.38 of its potential returns per unit of risk. Amkor Technology is currently generating about -0.05 per unit of risk. If you would invest 2,019 in PGE Corp on August 31, 2024 and sell it today you would earn a total of 144.00 from holding PGE Corp or generate 7.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
PGE Corp vs. Amkor Technology
Performance |
| Timeline |
| PGE Corp |
| Amkor Technology |
PGE Corp and Amkor Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PGE Corp and Amkor Technology
The main advantage of trading using opposite PGE Corp and Amkor Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PGE Corp 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.| PGE Corp vs. Consolidated Edison | PGE Corp vs. Southern Company | PGE Corp vs. Entergy | PGE Corp vs. Pinnacle West Capital |
| 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
Other Complementary Tools
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets |