Correlation Between Amkor Technology and 191216DE7
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By analyzing existing cross correlation between Amkor Technology and COCA COLA CO, you can compare the effects of market volatilities on Amkor Technology and 191216DE7 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 191216DE7. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amkor Technology and 191216DE7.
Diversification Opportunities for Amkor Technology and 191216DE7
0.53 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Amkor and 191216DE7 is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding Amkor Technology and COCA COLA CO in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on COCA A CO 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 191216DE7. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of COCA A CO has no effect on the direction of Amkor Technology i.e., Amkor Technology and 191216DE7 go up and down completely randomly.
Pair Corralation between Amkor Technology and 191216DE7
Given the investment horizon of 90 days Amkor Technology is expected to generate 2.95 times more return on investment than 191216DE7. However, Amkor Technology is 2.95 times more volatile than COCA COLA CO. It trades about 0.0 of its potential returns per unit of risk. COCA COLA CO is currently generating about -0.12 per unit of risk. If you would invest 2,640 in Amkor Technology on September 25, 2024 and sell it today you would lose (13.00) from holding Amkor Technology or give up 0.49% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 95.24% |
Values | Daily Returns |
Amkor Technology vs. COCA COLA CO
Performance |
Timeline |
Amkor Technology |
COCA A CO |
Amkor Technology and 191216DE7 Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Amkor Technology and 191216DE7
The main advantage of trading using opposite Amkor Technology and 191216DE7 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amkor Technology position performs unexpectedly, 191216DE7 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 191216DE7 will offset losses from the drop in 191216DE7's long position.The idea behind Amkor Technology and COCA COLA CO 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.191216DE7 vs. Minerals Technologies | 191216DE7 vs. Amkor Technology | 191216DE7 vs. Payoneer Global | 191216DE7 vs. ServiceNow |
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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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