Correlation Between Amkor Technology and INTNED

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

By analyzing existing cross correlation between Amkor Technology and INTNED 4625 06 JAN 26, you can compare the effects of market volatilities on Amkor Technology and INTNED 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 INTNED. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amkor Technology and INTNED.

Diversification Opportunities for Amkor Technology and INTNED

0.31

Correlation Coefficient

Amkor Technology  INTNED

Weak diversification

The 3 months correlation between Amkor and INTNED is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding Amkor Technology and INTNED 4625 06 JAN 26 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on INTNED 4625 06 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 INTNED. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of INTNED 4625 06 has no effect on the direction of Amkor Technology i.e., Amkor Technology and INTNED go up and down completely randomly.

Pair Corralation between Amkor Technology and INTNED

Given the investment horizon of 90 days Amkor Technology is expected to under-perform the INTNED. In addition to that, Amkor Technology is 7.85 times more volatile than INTNED 4625 06 JAN 26. It trades about -0.07 of its total potential returns per unit of risk. INTNED 4625 06 JAN 26 is currently generating about -0.11 per unit of volatility. If you would invest  9,996  in INTNED 4625 06 JAN 26 on October 7, 2024 and sell it today you would lose (134.00) from holding INTNED 4625 06 JAN 26 or give up 1.34% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	68.25%
Values	Daily Returns

Amkor Technology  vs.  INTNED 4625 06 JAN 26

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.

INTNED 4625 06

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days INTNED 4625 06 JAN 26 has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, INTNED 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 INTNED

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

The idea behind Amkor Technology and INTNED 4625 06 JAN 26 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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.