Correlation Between Amkor Technology and 91327BAB6

Can any of the company-specific risk be diversified away by investing in both Amkor Technology and 91327BAB6 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 91327BAB6 into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Amkor Technology and US91327BAB62, you can compare the effects of market volatilities on Amkor Technology and 91327BAB6 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 91327BAB6. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amkor Technology and 91327BAB6.

Diversification Opportunities for Amkor Technology and 91327BAB6

0.03

Correlation Coefficient

Amkor Technology  91327BAB6

Significant diversification

The 3 months correlation between Amkor and 91327BAB6 is 0.03. Overlapping area represents the amount of risk that can be diversified away by holding Amkor Technology and US91327BAB62 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on US91327BAB62 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 91327BAB6. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of US91327BAB62 has no effect on the direction of Amkor Technology i.e., Amkor Technology and 91327BAB6 go up and down completely randomly.

Pair Corralation between Amkor Technology and 91327BAB6

Given the investment horizon of 90 days Amkor Technology is expected to generate 0.24 times more return on investment than 91327BAB6. However, Amkor Technology is 4.11 times less risky than 91327BAB6. It trades about 0.12 of its potential returns per unit of risk. US91327BAB62 is currently generating about -0.09 per unit of risk. If you would invest  2,513  in Amkor Technology on October 20, 2024 and sell it today you would earn a total of  78.00  from holding Amkor Technology or generate 3.1% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	89.47%
Values	Daily Returns

Amkor Technology  vs.  US91327BAB62

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.

US91327BAB62

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days US91327BAB62 has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest conflicting 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 US91327BAB62 investors.

Pair Trading with Amkor Technology and 91327BAB6

The main advantage of trading using opposite Amkor Technology and 91327BAB6 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amkor Technology position performs unexpectedly, 91327BAB6 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 91327BAB6 will offset losses from the drop in 91327BAB6's long position.

The idea behind Amkor Technology and US91327BAB62 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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.