Correlation Between ACAFP and Amkor Technology
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By analyzing existing cross correlation between ACAFP 475 and Amkor Technology, you can compare the effects of market volatilities on ACAFP 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 ACAFP with a short position of Amkor Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of ACAFP and Amkor Technology.
Diversification Opportunities for ACAFP and Amkor Technology
-0.55 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between ACAFP and Amkor is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding ACAFP 475 and Amkor Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amkor Technology and ACAFP 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 ACAFP 475 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 ACAFP i.e., ACAFP and Amkor Technology go up and down completely randomly.
Pair Corralation between ACAFP and Amkor Technology
Assuming the 90 days trading horizon ACAFP 475 is expected to under-perform the Amkor Technology. In addition to that, ACAFP is 2.74 times more volatile than Amkor Technology. It trades about -0.36 of its total potential returns per unit of risk. Amkor Technology is currently generating about 0.03 per unit of volatility. If you would invest 2,600 in Amkor Technology on September 13, 2024 and sell it today you would earn a total of 18.50 from holding Amkor Technology or generate 0.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 31.82% |
| Values | Daily Returns |
ACAFP 475 vs. Amkor Technology
Performance |
| Timeline |
| ACAFP 475 |
| Amkor Technology |
ACAFP and Amkor Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ACAFP and Amkor Technology
The main advantage of trading using opposite ACAFP and Amkor Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ACAFP 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.The idea behind ACAFP 475 and Amkor Technology pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| 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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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