Correlation Between Amkor Technology and JD SPORTS
Can any of the company-specific risk be diversified away by investing in both Amkor Technology and JD SPORTS 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 Amkor Technology and JD SPORTS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Amkor Technology and JD SPORTS FASH, you can compare the effects of market volatilities on Amkor Technology and JD SPORTS 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 Amkor Technology with a short position of JD SPORTS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amkor Technology and JD SPORTS.
Diversification Opportunities for Amkor Technology and JD SPORTS
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Amkor and 9JD is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding Amkor Technology and JD SPORTS FASH in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JD SPORTS FASH and Amkor Technology 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 Amkor Technology are associated (or correlated) with JD SPORTS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JD SPORTS FASH has no effect on the direction of Amkor Technology i.e., Amkor Technology and JD SPORTS go up and down completely randomly.
Pair Corralation between Amkor Technology and JD SPORTS
Assuming the 90 days horizon Amkor Technology is expected to generate 1.03 times more return on investment than JD SPORTS. However, Amkor Technology is 1.03 times more volatile than JD SPORTS FASH. It trades about 0.02 of its potential returns per unit of risk. JD SPORTS FASH is currently generating about 0.0 per unit of risk. If you would invest 2,331 in Amkor Technology on September 25, 2024 and sell it today you would earn a total of 77.00 from holding Amkor Technology or generate 3.3% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Amkor Technology vs. JD SPORTS FASH
Performance |
Timeline |
Amkor Technology |
JD SPORTS FASH |
Amkor Technology and JD SPORTS Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Amkor Technology and JD SPORTS
The main advantage of trading using opposite Amkor Technology and JD SPORTS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amkor Technology position performs unexpectedly, JD SPORTS 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 JD SPORTS will offset losses from the drop in JD SPORTS's long position.Amkor Technology vs. Taiwan Semiconductor Manufacturing | Amkor Technology vs. Broadcom | Amkor Technology vs. Texas Instruments Incorporated | Amkor Technology vs. QUALCOMM Incorporated |
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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 Stocks Directory module to find actively traded stocks across global markets.
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