Correlation Between Treasury Wine and Amkor Technology
Can any of the company-specific risk be diversified away by investing in both Treasury Wine 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 Treasury Wine and Amkor Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Treasury Wine Estates and Amkor Technology, you can compare the effects of market volatilities on Treasury Wine 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 Treasury Wine with a short position of Amkor Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Treasury Wine and Amkor Technology.
Diversification Opportunities for Treasury Wine and Amkor Technology
0.38 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Treasury and Amkor is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding Treasury Wine Estates and Amkor Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amkor Technology and Treasury Wine 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 Treasury Wine Estates 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 Treasury Wine i.e., Treasury Wine and Amkor Technology go up and down completely randomly.
Pair Corralation between Treasury Wine and Amkor Technology
Assuming the 90 days horizon Treasury Wine Estates is expected to generate 0.65 times more return on investment than Amkor Technology. However, Treasury Wine Estates is 1.53 times less risky than Amkor Technology. It trades about 0.08 of its potential returns per unit of risk. Amkor Technology is currently generating about -0.09 per unit of risk. If you would invest 638.00 in Treasury Wine Estates on December 1, 2024 and sell it today you would earn a total of 19.00 from holding Treasury Wine Estates or generate 2.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Treasury Wine Estates vs. Amkor Technology
Performance |
| Timeline |
| Treasury Wine Estates |
| Amkor Technology |
Treasury Wine and Amkor Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Treasury Wine and Amkor Technology
The main advantage of trading using opposite Treasury Wine and Amkor Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Treasury Wine 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.| Treasury Wine vs. Guangdong Investment Limited | Treasury Wine vs. JLF INVESTMENT | Treasury Wine vs. Gruppo Mutuionline SpA | Treasury Wine vs. MEDCAW INVESTMENTS LS 01 |
| Amkor Technology vs. HK Electric Investments | Amkor Technology vs. MidCap Financial Investment | Amkor Technology vs. Aya Gold Silver | Amkor Technology vs. New Residential Investment |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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