Correlation Between United Parks and Amkor Technology
Can any of the company-specific risk be diversified away by investing in both United Parks 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 United Parks and Amkor Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between United Parks Resorts and Amkor Technology, you can compare the effects of market volatilities on United Parks 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 United Parks with a short position of Amkor Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of United Parks and Amkor Technology.
Diversification Opportunities for United Parks and Amkor Technology
-0.76 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between United and Amkor is -0.76. Overlapping area represents the amount of risk that can be diversified away by holding United Parks Resorts and Amkor Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amkor Technology and United Parks 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 United Parks Resorts 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 United Parks i.e., United Parks and Amkor Technology go up and down completely randomly.
Pair Corralation between United Parks and Amkor Technology
Given the investment horizon of 90 days United Parks is expected to generate 1.68 times less return on investment than Amkor Technology. But when comparing it to its historical volatility, United Parks Resorts is 1.03 times less risky than Amkor Technology. It trades about 0.02 of its potential returns per unit of risk. Amkor Technology is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 2,661 in Amkor Technology on September 12, 2024 and sell it today you would earn a total of 18.00 from holding Amkor Technology or generate 0.68% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
United Parks Resorts vs. Amkor Technology
Performance |
| Timeline |
| United Parks Resorts |
| Amkor Technology |
United Parks and Amkor Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with United Parks and Amkor Technology
The main advantage of trading using opposite United Parks and Amkor Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if United Parks 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.| United Parks vs. Corsair Gaming | United Parks vs. Sonida Senior Living | United Parks vs. Omni Health | United Parks vs. RadNet Inc |
| 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 CEOs Directory module to screen CEOs from public companies around the world.
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