Correlation Between Amkor Technology and Consolidated Communications
Can any of the company-specific risk be diversified away by investing in both Amkor Technology and Consolidated Communications 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 Consolidated Communications into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Amkor Technology and Consolidated Communications Holdings, you can compare the effects of market volatilities on Amkor Technology and Consolidated Communications 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 Consolidated Communications. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amkor Technology and Consolidated Communications.
Diversification Opportunities for Amkor Technology and Consolidated Communications
-0.66 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Amkor and Consolidated is -0.66. Overlapping area represents the amount of risk that can be diversified away by holding Amkor Technology and Consolidated Communications Ho in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Consolidated Communications 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 Consolidated Communications. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Consolidated Communications has no effect on the direction of Amkor Technology i.e., Amkor Technology and Consolidated Communications go up and down completely randomly.
Pair Corralation between Amkor Technology and Consolidated Communications
Assuming the 90 days horizon Amkor Technology is expected to generate 1.04 times less return on investment than Consolidated Communications. In addition to that, Amkor Technology is 1.13 times more volatile than Consolidated Communications Holdings. It trades about 0.03 of its total potential returns per unit of risk. Consolidated Communications Holdings is currently generating about 0.03 per unit of volatility. If you would invest 354.00 in Consolidated Communications Holdings on September 20, 2024 and sell it today you would earn a total of 92.00 from holding Consolidated Communications Holdings or generate 25.99% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Amkor Technology vs. Consolidated Communications Ho
Performance |
Timeline |
Amkor Technology |
Consolidated Communications |
Amkor Technology and Consolidated Communications Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Amkor Technology and Consolidated Communications
The main advantage of trading using opposite Amkor Technology and Consolidated Communications positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amkor Technology position performs unexpectedly, Consolidated Communications 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 Consolidated Communications will offset losses from the drop in Consolidated Communications' long position.Amkor Technology vs. United Rentals | Amkor Technology vs. Global Ship Lease | Amkor Technology vs. Verizon Communications | Amkor Technology vs. Jacquet Metal Service |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
Other Complementary Tools
Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format |