Correlation Between Amkor Technology and Super League

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

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

Diversification Opportunities for Amkor Technology and Super League

0.4

Correlation Coefficient

Amkor Technology  Super League

Very weak diversification

The 3 months correlation between Amkor and Super is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding Amkor Technology and Super League Enterprise in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Super League Enterprise 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 Super League. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Super League Enterprise has no effect on the direction of Amkor Technology i.e., Amkor Technology and Super League go up and down completely randomly.

Pair Corralation between Amkor Technology and Super League

Given the investment horizon of 90 days Amkor Technology is expected to under-perform the Super League. But the stock apears to be less risky and, when comparing its historical volatility, Amkor Technology is 2.72 times less risky than Super League. The stock trades about -0.07 of its potential returns per unit of risk. The Super League Enterprise is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest  63.00  in Super League Enterprise on October 4, 2024 and sell it today you would lose (1.20) from holding Super League Enterprise or give up 1.9% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	95.45%
Values	Daily Returns

Amkor Technology  vs.  Super League Enterprise

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.

Super League Enterprise

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Super League Enterprise has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unfluctuating performance in the last few months, the Stock's essential indicators remain rather sound which may send shares a bit higher in February 2025. The latest tumult may also be a sign of longer-term up-swing for the firm shareholders.

Pair Trading with Amkor Technology and Super League

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

The idea behind Amkor Technology and Super League Enterprise 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.