Correlation Between Intel and Amkor Technology

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

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

Diversification Opportunities for Intel and Amkor Technology

-0.48

Correlation Coefficient

Intel  Amkor Technology

Very good diversification

The 3 months correlation between Intel and Amkor is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding Intel and Amkor Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amkor Technology and Intel 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 Intel 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 Intel i.e., Intel and Amkor Technology go up and down completely randomly.

Pair Corralation between Intel and Amkor Technology

Assuming the 90 days horizon Intel is expected to generate 1.63 times more return on investment than Amkor Technology. However, Intel is 1.63 times more volatile than Amkor Technology. It trades about 0.07 of its potential returns per unit of risk. Amkor Technology is currently generating about -0.18 per unit of risk. If you would invest  1,921  in Intel on December 28, 2024 and sell it today you would earn a total of  260.00  from holding Intel or generate 13.53% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	98.41%
Values	Daily Returns

Intel  vs.  Amkor Technology

Intel

Risk-Adjusted Performance

Modest

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

Amkor Technology

Risk-Adjusted Performance

Very Weak

Over the last 90 days Amkor Technology has generated negative risk-adjusted returns adding no value to investors with long positions. Despite unsteady performance in the last few months, the Stock's basic indicators remain nearly stable which may send shares a bit higher in April 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

Pair Trading with Intel and Amkor Technology

The main advantage of trading using opposite Intel and Amkor Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Intel 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 Intel 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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.