Correlation Between Amkor Technology and NORFOLK
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By analyzing existing cross correlation between Amkor Technology and NORFOLK SOUTHN P, you can compare the effects of market volatilities on Amkor Technology and NORFOLK 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 NORFOLK. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amkor Technology and NORFOLK.
Diversification Opportunities for Amkor Technology and NORFOLK
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Amkor and NORFOLK is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding Amkor Technology and NORFOLK SOUTHN P in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NORFOLK SOUTHN P 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 NORFOLK. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NORFOLK SOUTHN P has no effect on the direction of Amkor Technology i.e., Amkor Technology and NORFOLK go up and down completely randomly.
Pair Corralation between Amkor Technology and NORFOLK
Given the investment horizon of 90 days Amkor Technology is expected to generate 287.67 times less return on investment than NORFOLK. But when comparing it to its historical volatility, Amkor Technology is 43.17 times less risky than NORFOLK. It trades about 0.02 of its potential returns per unit of risk. NORFOLK SOUTHN P is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 8,468 in NORFOLK SOUTHN P on September 23, 2024 and sell it today you would lose (1,070) from holding NORFOLK SOUTHN P or give up 12.64% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 54.53% |
Values | Daily Returns |
Amkor Technology vs. NORFOLK SOUTHN P
Performance |
Timeline |
Amkor Technology |
NORFOLK SOUTHN P |
Amkor Technology and NORFOLK Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Amkor Technology and NORFOLK
The main advantage of trading using opposite Amkor Technology and NORFOLK positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amkor Technology position performs unexpectedly, NORFOLK 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 NORFOLK will offset losses from the drop in NORFOLK's long position.Amkor Technology vs. Diodes Incorporated | Amkor Technology vs. Daqo New Energy | Amkor Technology vs. MagnaChip Semiconductor | Amkor Technology vs. Nano Labs |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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