Correlation Between Amkor Technology and TIANQI LITHIUM
Can any of the company-specific risk be diversified away by investing in both Amkor Technology and TIANQI LITHIUM 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 TIANQI LITHIUM into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Amkor Technology and TIANQI LITHIUM H, you can compare the effects of market volatilities on Amkor Technology and TIANQI LITHIUM 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 TIANQI LITHIUM. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amkor Technology and TIANQI LITHIUM.
Diversification Opportunities for Amkor Technology and TIANQI LITHIUM
-0.36 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Amkor and TIANQI is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding Amkor Technology and TIANQI LITHIUM H in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TIANQI LITHIUM H 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 TIANQI LITHIUM. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TIANQI LITHIUM H has no effect on the direction of Amkor Technology i.e., Amkor Technology and TIANQI LITHIUM go up and down completely randomly.
Pair Corralation between Amkor Technology and TIANQI LITHIUM
Assuming the 90 days horizon Amkor Technology is expected to generate 0.35 times more return on investment than TIANQI LITHIUM. However, Amkor Technology is 2.89 times less risky than TIANQI LITHIUM. It trades about 0.1 of its potential returns per unit of risk. TIANQI LITHIUM H is currently generating about -0.02 per unit of risk. If you would invest 2,520 in Amkor Technology on October 25, 2024 and sell it today you would earn a total of 59.00 from holding Amkor Technology or generate 2.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 94.44% |
| Values | Daily Returns |
Amkor Technology vs. TIANQI LITHIUM H
Performance |
| Timeline |
| Amkor Technology |
| TIANQI LITHIUM H |
Amkor Technology and TIANQI LITHIUM Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amkor Technology and TIANQI LITHIUM
The main advantage of trading using opposite Amkor Technology and TIANQI LITHIUM positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amkor Technology position performs unexpectedly, TIANQI LITHIUM 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 TIANQI LITHIUM will offset losses from the drop in TIANQI LITHIUM's long position.| Amkor Technology vs. NVIDIA | Amkor Technology vs. Taiwan Semiconductor Manufacturing | Amkor Technology vs. Broadcom | Amkor Technology vs. QUALCOMM Incorporated |
| TIANQI LITHIUM vs. Addtech AB | TIANQI LITHIUM vs. PKSHA TECHNOLOGY INC | TIANQI LITHIUM vs. Amkor Technology | TIANQI LITHIUM vs. AAC TECHNOLOGHLDGADR |
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.
Other Complementary Tools
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets |