Correlation Between Blue Hat and Amkor Technology
Can any of the company-specific risk be diversified away by investing in both Blue Hat and Amkor Technology 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 Blue Hat and Amkor Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Blue Hat Interactive and Amkor Technology, you can compare the effects of market volatilities on Blue Hat and Amkor Technology 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 Blue Hat with a short position of Amkor Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Blue Hat and Amkor Technology.
Diversification Opportunities for Blue Hat and Amkor Technology
0.38 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Blue and Amkor is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding Blue Hat Interactive and Amkor Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amkor Technology and Blue Hat 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 Blue Hat Interactive are associated (or correlated) with Amkor Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amkor Technology has no effect on the direction of Blue Hat i.e., Blue Hat and Amkor Technology go up and down completely randomly.
Pair Corralation between Blue Hat and Amkor Technology
Given the investment horizon of 90 days Blue Hat Interactive is expected to generate 1.74 times more return on investment than Amkor Technology. However, Blue Hat is 1.74 times more volatile than Amkor Technology. It trades about 0.17 of its potential returns per unit of risk. Amkor Technology is currently generating about -0.05 per unit of risk. If you would invest 105.00 in Blue Hat Interactive on January 29, 2024 and sell it today you would earn a total of 18.00 from holding Blue Hat Interactive or generate 17.14% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Blue Hat Interactive vs. Amkor Technology
Performance |
Timeline |
Blue Hat Interactive |
Amkor Technology |
Blue Hat and Amkor Technology Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Blue Hat and Amkor Technology
The main advantage of trading using opposite Blue Hat and Amkor Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Blue Hat position performs unexpectedly, Amkor Technology 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 Amkor Technology will offset losses from the drop in Amkor Technology's long position.Blue Hat vs. Mobile Global Esports | Blue Hat vs. GD Culture Group | Blue Hat vs. Playstudios | Blue Hat vs. Tiidal Gaming Group |
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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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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