Correlation Between Amkor Technology and Banzai International

Can any of the company-specific risk be diversified away by investing in both Amkor Technology and Banzai International 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 Banzai International into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Amkor Technology and Banzai International, you can compare the effects of market volatilities on Amkor Technology and Banzai International 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 Banzai International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amkor Technology and Banzai International.

Diversification Opportunities for Amkor Technology and Banzai International

0.05

Correlation Coefficient

Amkor Technology  Banzai International

Significant diversification

The 3 months correlation between Amkor and Banzai is 0.05. Overlapping area represents the amount of risk that can be diversified away by holding Amkor Technology and Banzai International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Banzai International 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 Banzai International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Banzai International has no effect on the direction of Amkor Technology i.e., Amkor Technology and Banzai International go up and down completely randomly.

Pair Corralation between Amkor Technology and Banzai International

Given the investment horizon of 90 days Amkor Technology is expected to generate 21.81 times less return on investment than Banzai International. But when comparing it to its historical volatility, Amkor Technology is 10.11 times less risky than Banzai International. It trades about 0.09 of its potential returns per unit of risk. Banzai International is currently generating about 0.2 of returns per unit of risk over similar time horizon. If you would invest  0.70  in Banzai International on September 28, 2024 and sell it today you would earn a total of  0.30  from holding Banzai International or generate 42.86% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	85.0%
Values	Daily Returns

Amkor Technology  vs.  Banzai International

Amkor Technology

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Amkor Technology has generated negative risk-adjusted returns adding no value to investors with long positions. Even with latest inconsistent performance, the Stock's forward-looking signals remain invariable and the latest agitation on Wall Street may also be a sign of long-running gains for the enterprise retail investors.

Banzai International

Risk-Adjusted Performance

14 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Banzai International are ranked lower than 14 (%) of all global equities and portfolios over the last 90 days. In spite of fairly unfluctuating forward indicators, Banzai International showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Amkor Technology and Banzai International

The main advantage of trading using opposite Amkor Technology and Banzai International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amkor Technology position performs unexpectedly, Banzai International 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 Banzai International will offset losses from the drop in Banzai International's long position.

The idea behind Amkor Technology and Banzai International 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.

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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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.