Correlation Between Amkor Technology and Femasys

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

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

Diversification Opportunities for Amkor Technology and Femasys

0.42

Correlation Coefficient

Amkor Technology  Femasys

Very weak diversification

The 3 months correlation between Amkor and Femasys is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding Amkor Technology and Femasys in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Femasys 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 Femasys. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Femasys has no effect on the direction of Amkor Technology i.e., Amkor Technology and Femasys go up and down completely randomly.

Pair Corralation between Amkor Technology and Femasys

Given the investment horizon of 90 days Amkor Technology is expected to under-perform the Femasys. But the stock apears to be less risky and, when comparing its historical volatility, Amkor Technology is 1.85 times less risky than Femasys. The stock trades about -0.07 of its potential returns per unit of risk. The Femasys is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest  113.00  in Femasys on October 8, 2024 and sell it today you would lose (1.00) from holding Femasys or give up 0.88% of portfolio value over 90 days.

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

Amkor Technology  vs.  Femasys

Amkor Technology

Risk-Adjusted Performance

0 of 100

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.

Femasys

Risk-Adjusted Performance

1 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Femasys are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of fairly strong primary indicators, Femasys is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Amkor Technology and Femasys

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

The idea behind Amkor Technology and Femasys 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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.