Correlation Between MINCO SILVER and Amkor Technology
Can any of the company-specific risk be diversified away by investing in both MINCO SILVER 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 MINCO SILVER and Amkor Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MINCO SILVER and Amkor Technology, you can compare the effects of market volatilities on MINCO SILVER 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 MINCO SILVER with a short position of Amkor Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of MINCO SILVER and Amkor Technology.
Diversification Opportunities for MINCO SILVER and Amkor Technology
-0.45 | Correlation Coefficient |
Very good diversification
The 3 months correlation between MINCO and Amkor is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding MINCO SILVER and Amkor Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amkor Technology and MINCO SILVER 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 MINCO SILVER 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 MINCO SILVER i.e., MINCO SILVER and Amkor Technology go up and down completely randomly.
Pair Corralation between MINCO SILVER and Amkor Technology
Assuming the 90 days trading horizon MINCO SILVER is expected to generate 1.05 times more return on investment than Amkor Technology. However, MINCO SILVER is 1.05 times more volatile than Amkor Technology. It trades about -0.1 of its potential returns per unit of risk. Amkor Technology is currently generating about -0.12 per unit of risk. If you would invest 14.00 in MINCO SILVER on August 27, 2024 and sell it today you would lose (1.00) from holding MINCO SILVER or give up 7.14% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
MINCO SILVER vs. Amkor Technology
Performance |
| Timeline |
| MINCO SILVER |
| Amkor Technology |
MINCO SILVER and Amkor Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MINCO SILVER and Amkor Technology
The main advantage of trading using opposite MINCO SILVER and Amkor Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MINCO SILVER 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.| MINCO SILVER vs. Apple Inc | MINCO SILVER vs. Apple Inc | MINCO SILVER vs. Apple Inc | MINCO SILVER vs. Microsoft |
| Amkor Technology vs. NVIDIA | Amkor Technology vs. NVIDIA | Amkor Technology vs. QUALCOMM Incorporated | Amkor Technology vs. Intel |
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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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