Correlation Between Amkor Technology and Kingboard Chemical

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

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

Diversification Opportunities for Amkor Technology and Kingboard Chemical

-0.29

Correlation Coefficient

Amkor Technology  Kingboard Chemical

Very good diversification

The 3 months correlation between Amkor and Kingboard is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding Amkor Technology and Kingboard Chemical Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kingboard Chemical 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 Kingboard Chemical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kingboard Chemical has no effect on the direction of Amkor Technology i.e., Amkor Technology and Kingboard Chemical go up and down completely randomly.

Pair Corralation between Amkor Technology and Kingboard Chemical

If you would invest  1,165  in Kingboard Chemical Holdings on December 21, 2024 and sell it today you would earn a total of  0.00  from holding Kingboard Chemical Holdings or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	98.33%
Values	Daily Returns

Amkor Technology  vs.  Kingboard Chemical Holdings

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.

Kingboard Chemical

Risk-Adjusted Performance

Very Weak

Over the last 90 days Kingboard Chemical Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly strong fundamental indicators, Kingboard Chemical is not utilizing all of its potentials. The latest stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Amkor Technology and Kingboard Chemical

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

The idea behind Amkor Technology and Kingboard Chemical Holdings 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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.