Correlation Between Amkor Technology and 655844CQ9

Can any of the company-specific risk be diversified away by investing in both Amkor Technology and 655844CQ9 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 655844CQ9 into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Amkor Technology and NSC 445 01 MAR 33, you can compare the effects of market volatilities on Amkor Technology and 655844CQ9 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 655844CQ9. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amkor Technology and 655844CQ9.

Diversification Opportunities for Amkor Technology and 655844CQ9

0.76

Correlation Coefficient

Amkor Technology  655844CQ9

Poor diversification

The 3 months correlation between Amkor and 655844CQ9 is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Amkor Technology and NSC 445 01 MAR 33 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NSC 445 01 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 655844CQ9. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NSC 445 01 has no effect on the direction of Amkor Technology i.e., Amkor Technology and 655844CQ9 go up and down completely randomly.

Pair Corralation between Amkor Technology and 655844CQ9

Given the investment horizon of 90 days Amkor Technology is expected to under-perform the 655844CQ9. In addition to that, Amkor Technology is 4.52 times more volatile than NSC 445 01 MAR 33. It trades about -0.02 of its total potential returns per unit of risk. NSC 445 01 MAR 33 is currently generating about -0.03 per unit of volatility. If you would invest  9,878  in NSC 445 01 MAR 33 on September 24, 2024 and sell it today you would lose (407.00) from holding NSC 445 01 MAR 33 or give up 4.12% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	72.69%
Values	Daily Returns

Amkor Technology  vs.  NSC 445 01 MAR 33

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 unsteady performance in the last few months, the Stock's forward-looking signals remain relatively invariable which may send shares a bit higher in January 2025. The latest agitation may also be a sign of long-running up-swing for the enterprise retail investors.

NSC 445 01

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days NSC 445 01 MAR 33 has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest weak performance, the Bond's basic indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for NSC 445 01 MAR 33 investors.

Pair Trading with Amkor Technology and 655844CQ9

The main advantage of trading using opposite Amkor Technology and 655844CQ9 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amkor Technology position performs unexpectedly, 655844CQ9 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 655844CQ9 will offset losses from the drop in 655844CQ9's long position.

The idea behind Amkor Technology and NSC 445 01 MAR 33 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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.