Correlation Between Intuitive Machines and Amkor Technology

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

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

Diversification Opportunities for Intuitive Machines and Amkor Technology

0.03

Correlation Coefficient

Intuitive Machines  Amkor Technology

Significant diversification

The 3 months correlation between Intuitive and Amkor is 0.03. Overlapping area represents the amount of risk that can be diversified away by holding Intuitive Machines and Amkor Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amkor Technology and Intuitive Machines 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 Intuitive Machines 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 Intuitive Machines i.e., Intuitive Machines and Amkor Technology go up and down completely randomly.

Pair Corralation between Intuitive Machines and Amkor Technology

Assuming the 90 days horizon Intuitive Machines is expected to under-perform the Amkor Technology. In addition to that, Intuitive Machines is 7.93 times more volatile than Amkor Technology. It trades about -0.15 of its total potential returns per unit of risk. Amkor Technology is currently generating about -0.2 per unit of volatility. If you would invest  2,568  in Amkor Technology on December 29, 2024 and sell it today you would lose (738.00) from holding Amkor Technology or give up 28.74% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	75.41%
Values	Daily Returns

Intuitive Machines  vs.  Amkor Technology

Intuitive Machines

Risk-Adjusted Performance

Very Weak

Over the last 90 days Intuitive Machines has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fragile performance in the last few months, the Stock's basic indicators remain fairly stable which may send shares a bit higher in April 2025. The latest fuss may also be a sign of long-term up-swing for the venture sophisticated investors.

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. 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 April 2025. The latest agitation may also be a sign of long-running up-swing for the enterprise retail investors.

Pair Trading with Intuitive Machines and Amkor Technology

The main advantage of trading using opposite Intuitive Machines and Amkor Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Intuitive Machines 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 Intuitive Machines 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.

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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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.