Correlation Between Amkor Technology and Doubledown Interactive

Can any of the company-specific risk be diversified away by investing in both Amkor Technology and Doubledown Interactive 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 Doubledown Interactive into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Amkor Technology and Doubledown Interactive Co, you can compare the effects of market volatilities on Amkor Technology and Doubledown Interactive 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 Doubledown Interactive. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amkor Technology and Doubledown Interactive.

Diversification Opportunities for Amkor Technology and Doubledown Interactive

0.74

Correlation Coefficient

Amkor Technology  Doubledown Interactive

Poor diversification

The 3 months correlation between Amkor and Doubledown is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Amkor Technology and Doubledown Interactive Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Doubledown Interactive 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 Doubledown Interactive. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Doubledown Interactive has no effect on the direction of Amkor Technology i.e., Amkor Technology and Doubledown Interactive go up and down completely randomly.

Pair Corralation between Amkor Technology and Doubledown Interactive

Given the investment horizon of 90 days Amkor Technology is expected to under-perform the Doubledown Interactive. In addition to that, Amkor Technology is 1.04 times more volatile than Doubledown Interactive Co. It trades about -0.2 of its total potential returns per unit of risk. Doubledown Interactive Co is currently generating about -0.03 per unit of volatility. If you would invest  1,055  in Doubledown Interactive Co on December 29, 2024 and sell it today you would lose (72.00) from holding Doubledown Interactive Co or give up 6.82% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	100.0%
Values	Daily Returns

Amkor Technology  vs.  Doubledown Interactive Co

Amkor Technology

Risk-Adjusted Performance

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 inconsistent performance in the last few months, the Stock's forward-looking signals remain relatively invariable which may send shares a bit higher in April 2025. The latest agitation may also be a sign of long-running up-swing for the enterprise retail investors.

Doubledown Interactive

Risk-Adjusted Performance

Very Weak

Over the last 90 days Doubledown Interactive Co has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fairly strong fundamental indicators, Doubledown Interactive is not utilizing all of its potentials. The latest stock price confusion, may contribute to short-horizon losses for the traders.

Pair Trading with Amkor Technology and Doubledown Interactive

The main advantage of trading using opposite Amkor Technology and Doubledown Interactive positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amkor Technology position performs unexpectedly, Doubledown Interactive 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 Doubledown Interactive will offset losses from the drop in Doubledown Interactive's long position.

The idea behind Amkor Technology and Doubledown Interactive Co 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.

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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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.