Correlation Between Amkor Technology and MARRIOTT
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By analyzing existing cross correlation between Amkor Technology and MARRIOTT INTERNATIONAL INC, you can compare the effects of market volatilities on Amkor Technology and MARRIOTT 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 MARRIOTT. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amkor Technology and MARRIOTT.
Diversification Opportunities for Amkor Technology and MARRIOTT
0.39 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Amkor and MARRIOTT is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding Amkor Technology and MARRIOTT INTERNATIONAL INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MARRIOTT 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 MARRIOTT. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MARRIOTT INTERNATIONAL has no effect on the direction of Amkor Technology i.e., Amkor Technology and MARRIOTT go up and down completely randomly.
Pair Corralation between Amkor Technology and MARRIOTT
Given the investment horizon of 90 days Amkor Technology is expected to generate 4.47 times more return on investment than MARRIOTT. However, Amkor Technology is 4.47 times more volatile than MARRIOTT INTERNATIONAL INC. It trades about 0.02 of its potential returns per unit of risk. MARRIOTT INTERNATIONAL INC is currently generating about 0.02 per unit of risk. If you would invest 2,455 in Amkor Technology on September 24, 2024 and sell it today you would earn a total of 72.00 from holding Amkor Technology or generate 2.93% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 99.2% |
Values | Daily Returns |
Amkor Technology vs. MARRIOTT INTERNATIONAL INC
Performance |
Timeline |
Amkor Technology |
MARRIOTT INTERNATIONAL |
Amkor Technology and MARRIOTT Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Amkor Technology and MARRIOTT
The main advantage of trading using opposite Amkor Technology and MARRIOTT positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amkor Technology position performs unexpectedly, MARRIOTT 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 MARRIOTT will offset losses from the drop in MARRIOTT's long position.Amkor Technology vs. Diodes Incorporated | Amkor Technology vs. Daqo New Energy | Amkor Technology vs. Nano Labs | Amkor Technology vs. Impinj Inc |
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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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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