Correlation Between Amkor Technology and MetaVia

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

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

Diversification Opportunities for Amkor Technology and MetaVia

0.6

Correlation Coefficient

Amkor Technology  MetaVia

Poor diversification

The 3 months correlation between Amkor and MetaVia is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding Amkor Technology and MetaVia in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MetaVia 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 MetaVia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MetaVia has no effect on the direction of Amkor Technology i.e., Amkor Technology and MetaVia go up and down completely randomly.

Pair Corralation between Amkor Technology and MetaVia

Given the investment horizon of 90 days Amkor Technology is expected to under-perform the MetaVia. But the stock apears to be less risky and, when comparing its historical volatility, Amkor Technology is 2.19 times less risky than MetaVia. The stock trades about 0.0 of its potential returns per unit of risk. The MetaVia is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest  342.00  in MetaVia on October 9, 2024 and sell it today you would lose (110.00) from holding MetaVia or give up 32.16% 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.  MetaVia

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.

MetaVia

Risk-Adjusted Performance

0 of 100

Weak

Over the last 90 days MetaVia has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, MetaVia 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 MetaVia

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

The idea behind Amkor Technology and MetaVia 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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.