Correlation Between Amkor Technology and Cedar Realty

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Amkor Technology and Cedar Realty 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 Cedar Realty into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Amkor Technology and Cedar Realty Trust, you can compare the effects of market volatilities on Amkor Technology and Cedar Realty 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 Cedar Realty. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amkor Technology and Cedar Realty.

Diversification Opportunities for Amkor Technology and Cedar Realty

-0.23
  Correlation Coefficient

Very good diversification

The 3 months correlation between Amkor and Cedar is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding Amkor Technology and Cedar Realty Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cedar Realty Trust 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 Cedar Realty. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cedar Realty Trust has no effect on the direction of Amkor Technology i.e., Amkor Technology and Cedar Realty go up and down completely randomly.

Pair Corralation between Amkor Technology and Cedar Realty

Given the investment horizon of 90 days Amkor Technology is expected to under-perform the Cedar Realty. But the stock apears to be less risky and, when comparing its historical volatility, Amkor Technology is 1.45 times less risky than Cedar Realty. The stock trades about -0.05 of its potential returns per unit of risk. The Cedar Realty Trust is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest  1,512  in Cedar Realty Trust on October 23, 2024 and sell it today you would earn a total of  73.00  from holding Cedar Realty Trust or generate 4.83% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthInsignificant
Accuracy98.36%
ValuesDaily Returns

Amkor Technology  vs.  Cedar Realty Trust

 Performance 
       Timeline  
Amkor Technology 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
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.
Cedar Realty Trust 

Risk-Adjusted Performance

3 of 100

 
Weak
 
Strong
Insignificant
Compared to the overall equity markets, risk-adjusted returns on investments in Cedar Realty Trust are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, Cedar Realty may actually be approaching a critical reversion point that can send shares even higher in February 2025.

Amkor Technology and Cedar Realty Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Amkor Technology and Cedar Realty

The main advantage of trading using opposite Amkor Technology and Cedar Realty positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amkor Technology position performs unexpectedly, Cedar Realty 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 Cedar Realty will offset losses from the drop in Cedar Realty's long position.
The idea behind Amkor Technology and Cedar Realty Trust 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.
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.

Other Complementary Tools

Sectors
List of equity sectors categorizing publicly traded companies based on their primary business activities
ETFs
Find actively traded Exchange Traded Funds (ETF) from around the world
Analyst Advice
Analyst recommendations and target price estimates broken down by several categories
Stock Screener
Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook.
Cryptocurrency Center
Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency