Correlation Between 360 Finance and Amkor Technology
Can any of the company-specific risk be diversified away by investing in both 360 Finance 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 360 Finance and Amkor Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between 360 Finance and Amkor Technology, you can compare the effects of market volatilities on 360 Finance 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 360 Finance with a short position of Amkor Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of 360 Finance and Amkor Technology.
Diversification Opportunities for 360 Finance and Amkor Technology
-0.5 | Correlation Coefficient |
Very good diversification
The 3 months correlation between 360 and Amkor is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding 360 Finance and Amkor Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amkor Technology and 360 Finance 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 360 Finance 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 360 Finance i.e., 360 Finance and Amkor Technology go up and down completely randomly.
Pair Corralation between 360 Finance and Amkor Technology
Given the investment horizon of 90 days 360 Finance is expected to generate 1.07 times more return on investment than Amkor Technology. However, 360 Finance is 1.07 times more volatile than Amkor Technology. It trades about 0.05 of its potential returns per unit of risk. Amkor Technology is currently generating about 0.01 per unit of risk. If you would invest 2,005 in 360 Finance on August 27, 2024 and sell it today you would earn a total of 1,448 from holding 360 Finance or generate 72.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
360 Finance vs. Amkor Technology
Performance |
| Timeline |
| 360 Finance |
| Amkor Technology |
360 Finance and Amkor Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with 360 Finance and Amkor Technology
The main advantage of trading using opposite 360 Finance and Amkor Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 360 Finance 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.| 360 Finance vs. SLM Corp | 360 Finance vs. Orix Corp Ads | 360 Finance vs. FirstCash | 360 Finance vs. Medallion Financial Corp |
| 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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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