Correlation Between Transportadora and Amkor Technology
Can any of the company-specific risk be diversified away by investing in both Transportadora 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 Transportadora and Amkor Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Transportadora de Gas and Amkor Technology, you can compare the effects of market volatilities on Transportadora 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 Transportadora with a short position of Amkor Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Transportadora and Amkor Technology.
Diversification Opportunities for Transportadora and Amkor Technology
-0.73 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Transportadora and Amkor is -0.73. Overlapping area represents the amount of risk that can be diversified away by holding Transportadora de Gas and Amkor Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amkor Technology and Transportadora 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 Transportadora de Gas 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 Transportadora i.e., Transportadora and Amkor Technology go up and down completely randomly.
Pair Corralation between Transportadora and Amkor Technology
Assuming the 90 days trading horizon Transportadora de Gas is expected to generate 1.25 times more return on investment than Amkor Technology. However, Transportadora is 1.25 times more volatile than Amkor Technology. It trades about 0.08 of its potential returns per unit of risk. Amkor Technology is currently generating about 0.02 per unit of risk. If you would invest 875.00 in Transportadora de Gas on August 29, 2024 and sell it today you would earn a total of 2,005 from holding Transportadora de Gas or generate 229.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Transportadora de Gas vs. Amkor Technology
Performance |
| Timeline |
| Transportadora de Gas |
| Amkor Technology |
Transportadora and Amkor Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Transportadora and Amkor Technology
The main advantage of trading using opposite Transportadora and Amkor Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Transportadora 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.| Transportadora vs. China Datang | Transportadora vs. Stewart Information Services | Transportadora vs. SOLSTAD OFFSHORE NK | Transportadora vs. EIDESVIK OFFSHORE NK |
| Amkor Technology vs. NVIDIA | Amkor Technology vs. Taiwan Semiconductor Manufacturing | Amkor Technology vs. Texas Instruments Incorporated | Amkor Technology vs. Advanced Micro Devices |
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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
Other Complementary Tools
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets |