Correlation Between Wayside Technology and Amkor Technology
Can any of the company-specific risk be diversified away by investing in both Wayside Technology 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 Wayside Technology and Amkor Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Wayside Technology Group and Amkor Technology, you can compare the effects of market volatilities on Wayside Technology 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 Wayside Technology with a short position of Amkor Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wayside Technology and Amkor Technology.
Diversification Opportunities for Wayside Technology and Amkor Technology
-0.61 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Wayside and Amkor is -0.61. Overlapping area represents the amount of risk that can be diversified away by holding Wayside Technology Group and Amkor Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amkor Technology and Wayside Technology 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 Wayside Technology Group 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 Wayside Technology i.e., Wayside Technology and Amkor Technology go up and down completely randomly.
Pair Corralation between Wayside Technology and Amkor Technology
Assuming the 90 days horizon Wayside Technology Group is expected to generate 0.94 times more return on investment than Amkor Technology. However, Wayside Technology Group is 1.06 times less risky than Amkor Technology. It trades about 0.11 of its potential returns per unit of risk. Amkor Technology is currently generating about 0.02 per unit of risk. If you would invest 2,927 in Wayside Technology Group on September 5, 2024 and sell it today you would earn a total of 9,873 from holding Wayside Technology Group or generate 337.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Wayside Technology Group vs. Amkor Technology
Performance |
| Timeline |
| Wayside Technology |
| Amkor Technology |
Wayside Technology and Amkor Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Wayside Technology and Amkor Technology
The main advantage of trading using opposite Wayside Technology and Amkor Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Wayside Technology 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.| Wayside Technology vs. NH HOTEL GROUP | Wayside Technology vs. SMA Solar Technology | Wayside Technology vs. Sunstone Hotel Investors | Wayside Technology vs. Xenia Hotels Resorts |
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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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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