Correlation Between Amkor Technology and MACOM Technology
Can any of the company-specific risk be diversified away by investing in both Amkor Technology and MACOM 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 Amkor Technology and MACOM Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Amkor Technology and MACOM Technology Solutions, you can compare the effects of market volatilities on Amkor Technology and MACOM 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 Amkor Technology with a short position of MACOM Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amkor Technology and MACOM Technology.
Diversification Opportunities for Amkor Technology and MACOM Technology
0.53 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Amkor and MACOM is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding Amkor Technology and MACOM Technology Solutions in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MACOM Technology Sol 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 MACOM Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MACOM Technology Sol has no effect on the direction of Amkor Technology i.e., Amkor Technology and MACOM Technology go up and down completely randomly.
Pair Corralation between Amkor Technology and MACOM Technology
Assuming the 90 days horizon Amkor Technology is expected to under-perform the MACOM Technology. But the stock apears to be less risky and, when comparing its historical volatility, Amkor Technology is 1.94 times less risky than MACOM Technology. The stock trades about -0.26 of its potential returns per unit of risk. The MACOM Technology Solutions is currently generating about -0.04 of returns per unit of risk over similar time horizon. If you would invest 13,300 in MACOM Technology Solutions on November 7, 2024 and sell it today you would lose (500.00) from holding MACOM Technology Solutions or give up 3.76% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Amkor Technology vs. MACOM Technology Solutions
Performance |
| Timeline |
| Amkor Technology |
| MACOM Technology Sol |
Amkor Technology and MACOM Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amkor Technology and MACOM Technology
The main advantage of trading using opposite Amkor Technology and MACOM Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amkor Technology position performs unexpectedly, MACOM 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 MACOM Technology will offset losses from the drop in MACOM Technology's long position.| Amkor Technology vs. New China Life | Amkor Technology vs. ASURE SOFTWARE | Amkor Technology vs. INSURANCE AUST GRP | Amkor Technology vs. Firan Technology Group |
| MACOM Technology vs. Japan Medical Dynamic | MACOM Technology vs. PEPTONIC MEDICAL | MACOM Technology vs. Corporate Office Properties | MACOM Technology vs. OFFICE DEPOT |
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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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