Correlation Between Amkor Technology and NORTHWELL

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

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

Diversification Opportunities for Amkor Technology and NORTHWELL

0.6

Correlation Coefficient

Amkor Technology  NORTHWELL

Poor diversification

The 3 months correlation between Amkor and NORTHWELL is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding Amkor Technology and NORTHWELL HEALTHCARE INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NORTHWELL HEALTHCARE INC 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 NORTHWELL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NORTHWELL HEALTHCARE INC has no effect on the direction of Amkor Technology i.e., Amkor Technology and NORTHWELL go up and down completely randomly.

Pair Corralation between Amkor Technology and NORTHWELL

Given the investment horizon of 90 days Amkor Technology is expected to generate 168.14 times less return on investment than NORTHWELL. But when comparing it to its historical volatility, Amkor Technology is 38.94 times less risky than NORTHWELL. It trades about 0.02 of its potential returns per unit of risk. NORTHWELL HEALTHCARE INC is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest  8,093  in NORTHWELL HEALTHCARE INC on September 14, 2024 and sell it today you would earn a total of  12.00  from holding NORTHWELL HEALTHCARE INC or generate 0.15% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	66.67%
Values	Daily Returns

Amkor Technology  vs.  NORTHWELL HEALTHCARE INC

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.

NORTHWELL HEALTHCARE INC

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days NORTHWELL HEALTHCARE INC has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest unfluctuating 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 NORTHWELL HEALTHCARE INC investors.

Pair Trading with Amkor Technology and NORTHWELL

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

The idea behind Amkor Technology and NORTHWELL HEALTHCARE INC 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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.