Correlation Between Corsair Gaming and Amkor Technology

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

By analyzing existing cross correlation between Corsair Gaming and Amkor Technology, you can compare the effects of market volatilities on Corsair Gaming and Amkor Technology 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 Corsair Gaming with a short position of Amkor Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Corsair Gaming and Amkor Technology.

Diversification Opportunities for Corsair Gaming and Amkor Technology

-0.13

Correlation Coefficient

Corsair Gaming  Amkor Technology

Good diversification

The 3 months correlation between Corsair and Amkor is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding Corsair Gaming and Amkor Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amkor Technology and Corsair Gaming 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 Corsair Gaming are associated (or correlated) with Amkor Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amkor Technology has no effect on the direction of Corsair Gaming i.e., Corsair Gaming and Amkor Technology go up and down completely randomly.

Pair Corralation between Corsair Gaming and Amkor Technology

Given the investment horizon of 90 days Corsair Gaming is expected to under-perform the Amkor Technology. But the stock apears to be less risky and, when comparing its historical volatility, Corsair Gaming is 1.01 times less risky than Amkor Technology. The stock trades about -0.03 of its potential returns per unit of risk. The Amkor Technology is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest  2,877  in Amkor Technology on October 9, 2024 and sell it today you would lose (204.00) from holding Amkor Technology or give up 7.09% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	99.8%
Values	Daily Returns

Corsair Gaming  vs.  Amkor Technology

Corsair Gaming

Risk-Adjusted Performance

5 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Corsair Gaming are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. Even with relatively fragile basic indicators, Corsair Gaming reported solid returns over the last few months and may actually be approaching a breakup point.

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.

Pair Trading with Corsair Gaming and Amkor Technology

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

The idea behind Corsair Gaming and Amkor Technology 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.

Check out your portfolio center.

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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.