Correlation Between PICKN PAY and Amkor Technology
Can any of the company-specific risk be diversified away by investing in both PICKN PAY 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 PICKN PAY and Amkor Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PICKN PAY STORES and Amkor Technology, you can compare the effects of market volatilities on PICKN PAY 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 PICKN PAY with a short position of Amkor Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of PICKN PAY and Amkor Technology.
Diversification Opportunities for PICKN PAY and Amkor Technology
-0.04 | Correlation Coefficient |
Good diversification
The 3 months correlation between PICKN and Amkor is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding PICKN PAY STORES and Amkor Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amkor Technology and PICKN PAY 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 PICKN PAY STORES 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 PICKN PAY i.e., PICKN PAY and Amkor Technology go up and down completely randomly.
Pair Corralation between PICKN PAY and Amkor Technology
Assuming the 90 days trading horizon PICKN PAY STORES is expected to under-perform the Amkor Technology. In addition to that, PICKN PAY is 1.32 times more volatile than Amkor Technology. It trades about -0.14 of its total potential returns per unit of risk. Amkor Technology is currently generating about -0.13 per unit of volatility. If you would invest 2,472 in Amkor Technology on November 3, 2024 and sell it today you would lose (126.00) from holding Amkor Technology or give up 5.1% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
PICKN PAY STORES vs. Amkor Technology
Performance |
| Timeline |
| PICKN PAY STORES |
| Amkor Technology |
PICKN PAY and Amkor Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PICKN PAY and Amkor Technology
The main advantage of trading using opposite PICKN PAY and Amkor Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PICKN PAY 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.| PICKN PAY vs. GRUPO CARSO A1 | PICKN PAY vs. Mitsubishi Gas Chemical | PICKN PAY vs. Siamgas And Petrochemicals | PICKN PAY vs. CHEMICAL INDUSTRIES |
| Amkor Technology vs. NVIDIA | Amkor Technology vs. NVIDIA | Amkor Technology vs. Taiwan Semiconductor Manufacturing | Amkor Technology vs. Texas Instruments Incorporated |
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.
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