Correlation Between Amkor Technology and 191216DE7

Can any of the company-specific risk be diversified away by investing in both Amkor Technology and 191216DE7 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 191216DE7 into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Amkor Technology and COCA COLA CO, you can compare the effects of market volatilities on Amkor Technology and 191216DE7 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 191216DE7. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amkor Technology and 191216DE7.

Diversification Opportunities for Amkor Technology and 191216DE7

0.34

Correlation Coefficient

Amkor Technology  191216DE7

Weak diversification

The 3 months correlation between Amkor and 191216DE7 is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding Amkor Technology and COCA COLA CO in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on COCA A CO 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 191216DE7. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of COCA A CO has no effect on the direction of Amkor Technology i.e., Amkor Technology and 191216DE7 go up and down completely randomly.

Pair Corralation between Amkor Technology and 191216DE7

Given the investment horizon of 90 days Amkor Technology is expected to under-perform the 191216DE7. In addition to that, Amkor Technology is 3.08 times more volatile than COCA COLA CO. It trades about -0.1 of its total potential returns per unit of risk. COCA COLA CO is currently generating about -0.14 per unit of volatility. If you would invest  8,264  in COCA COLA CO on October 14, 2024 and sell it today you would lose (140.00) from holding COCA COLA CO or give up 1.69% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	90.48%
Values	Daily Returns

Amkor Technology  vs.  COCA COLA CO

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.

COCA A CO

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days COCA COLA CO has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, 191216DE7 is not utilizing all of its potentials. The recent stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Amkor Technology and 191216DE7

The main advantage of trading using opposite Amkor Technology and 191216DE7 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amkor Technology position performs unexpectedly, 191216DE7 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 191216DE7 will offset losses from the drop in 191216DE7's long position.

The idea behind Amkor Technology and COCA COLA CO 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 Bonds Directory module to find actively traded corporate debentures issued by US companies.