Correlation Between Amkor Technology and Maison Solutions

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

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

Diversification Opportunities for Amkor Technology and Maison Solutions

0.35

Correlation Coefficient

Amkor Technology  Maison Solutions

Weak diversification

The 3 months correlation between Amkor and Maison is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding Amkor Technology and Maison Solutions in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Maison Solutions 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 Maison Solutions. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Maison Solutions has no effect on the direction of Amkor Technology i.e., Amkor Technology and Maison Solutions go up and down completely randomly.

Pair Corralation between Amkor Technology and Maison Solutions

Given the investment horizon of 90 days Amkor Technology is expected to generate 257.0 times less return on investment than Maison Solutions. But when comparing it to its historical volatility, Amkor Technology is 6.23 times less risky than Maison Solutions. It trades about 0.0 of its potential returns per unit of risk. Maison Solutions is currently generating about 0.17 of returns per unit of risk over similar time horizon. If you would invest  98.00  in Maison Solutions on October 11, 2024 and sell it today you would earn a total of  31.00  from holding Maison Solutions or generate 31.63% return on investment over 90 days.

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

Amkor Technology  vs.  Maison Solutions

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

Maison Solutions

Risk-Adjusted Performance

3 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Maison Solutions are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively weak basic indicators, Maison Solutions unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Amkor Technology and Maison Solutions

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

The idea behind Amkor Technology and Maison Solutions 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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.