Correlation Between Amkor Technology and Prestige Wealth

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

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

Diversification Opportunities for Amkor Technology and Prestige Wealth

0.69

Correlation Coefficient

Amkor Technology  Prestige Wealth

Poor diversification

The 3 months correlation between Amkor and Prestige is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Amkor Technology and Prestige Wealth Ordinary in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Prestige Wealth Ordinary 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 Prestige Wealth. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Prestige Wealth Ordinary has no effect on the direction of Amkor Technology i.e., Amkor Technology and Prestige Wealth go up and down completely randomly.

Pair Corralation between Amkor Technology and Prestige Wealth

Given the investment horizon of 90 days Amkor Technology is expected to generate 0.24 times more return on investment than Prestige Wealth. However, Amkor Technology is 4.13 times less risky than Prestige Wealth. It trades about -0.17 of its potential returns per unit of risk. Prestige Wealth Ordinary is currently generating about -0.11 per unit of risk. If you would invest  2,629  in Amkor Technology on December 25, 2024 and sell it today you would lose (660.00) from holding Amkor Technology or give up 25.1% 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.  Prestige Wealth Ordinary

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.

Prestige Wealth Ordinary

Risk-Adjusted Performance

Very Weak

Over the last 90 days Prestige Wealth Ordinary has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fragile performance in the last few months, the Stock's basic indicators remain very healthy which may send shares a bit higher in April 2025. The recent disarray may also be a sign of long period up-swing for the firm investors.

Pair Trading with Amkor Technology and Prestige Wealth

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

The idea behind Amkor Technology and Prestige Wealth Ordinary 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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.