Correlation Between Playtech Plc and Amkor Technology
Can any of the company-specific risk be diversified away by investing in both Playtech Plc 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 Playtech Plc and Amkor Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Playtech plc and Amkor Technology, you can compare the effects of market volatilities on Playtech Plc 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 Playtech Plc with a short position of Amkor Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Playtech Plc and Amkor Technology.
Diversification Opportunities for Playtech Plc and Amkor Technology
-0.72 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Playtech and Amkor is -0.72. Overlapping area represents the amount of risk that can be diversified away by holding Playtech plc and Amkor Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amkor Technology and Playtech Plc 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 Playtech plc 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 Playtech Plc i.e., Playtech Plc and Amkor Technology go up and down completely randomly.
Pair Corralation between Playtech Plc and Amkor Technology
Assuming the 90 days horizon Playtech plc is expected to generate 0.81 times more return on investment than Amkor Technology. However, Playtech plc is 1.23 times less risky than Amkor Technology. It trades about 0.12 of its potential returns per unit of risk. Amkor Technology is currently generating about 0.03 per unit of risk. If you would invest 456.00 in Playtech plc on September 1, 2024 and sell it today you would earn a total of 494.00 from holding Playtech plc or generate 108.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Playtech plc vs. Amkor Technology
Performance |
| Timeline |
| Playtech plc |
| Amkor Technology |
Playtech Plc and Amkor Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Playtech Plc and Amkor Technology
The main advantage of trading using opposite Playtech Plc and Amkor Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Playtech Plc 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.| Playtech Plc vs. Fidus Investment Corp | Playtech Plc vs. BTB Real Estate | Playtech Plc vs. Bridgford Foods | Playtech Plc vs. Aegon NV ADR |
| Amkor Technology vs. NXP Semiconductors NV | Amkor Technology vs. GSI Technology | Amkor Technology vs. MaxLinear | 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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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