Correlation Between Amkor Technology and Vindicator Silver

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

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

Diversification Opportunities for Amkor Technology and Vindicator Silver

0.32

Correlation Coefficient

Amkor Technology  Vindicator Silver

Weak diversification

The 3 months correlation between Amkor and Vindicator is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding Amkor Technology and Vindicator Silver Lead Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vindicator Silver Lead 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 Vindicator Silver. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vindicator Silver Lead has no effect on the direction of Amkor Technology i.e., Amkor Technology and Vindicator Silver go up and down completely randomly.

Pair Corralation between Amkor Technology and Vindicator Silver

Given the investment horizon of 90 days Amkor Technology is expected to generate 0.73 times more return on investment than Vindicator Silver. However, Amkor Technology is 1.38 times less risky than Vindicator Silver. It trades about 0.12 of its potential returns per unit of risk. Vindicator Silver Lead Mining is currently generating about -0.23 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	Very Weak
Accuracy	95.0%
Values	Daily Returns

Amkor Technology  vs.  Vindicator Silver Lead Mining

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.

Vindicator Silver Lead

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Vindicator Silver Lead Mining has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unfluctuating performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in February 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Pair Trading with Amkor Technology and Vindicator Silver

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

The idea behind Amkor Technology and Vindicator Silver Lead Mining 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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.