Correlation Between Amkor Technology and INNOVATEC SPA
Can any of the company-specific risk be diversified away by investing in both Amkor Technology and INNOVATEC SPA 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 INNOVATEC SPA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Amkor Technology and INNOVATEC SPA, you can compare the effects of market volatilities on Amkor Technology and INNOVATEC SPA 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 INNOVATEC SPA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amkor Technology and INNOVATEC SPA.
Diversification Opportunities for Amkor Technology and INNOVATEC SPA
0.43 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Amkor and INNOVATEC is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding Amkor Technology and INNOVATEC SPA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on INNOVATEC SPA 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 INNOVATEC SPA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of INNOVATEC SPA has no effect on the direction of Amkor Technology i.e., Amkor Technology and INNOVATEC SPA go up and down completely randomly.
Pair Corralation between Amkor Technology and INNOVATEC SPA
Assuming the 90 days horizon Amkor Technology is expected to generate 0.82 times more return on investment than INNOVATEC SPA. However, Amkor Technology is 1.22 times less risky than INNOVATEC SPA. It trades about 0.02 of its potential returns per unit of risk. INNOVATEC SPA is currently generating about 0.0 per unit of risk. If you would invest 2,367 in Amkor Technology on September 14, 2024 and sell it today you would earn a total of 97.00 from holding Amkor Technology or generate 4.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Amkor Technology vs. INNOVATEC SPA
Performance |
| Timeline |
| Amkor Technology |
| INNOVATEC SPA |
Amkor Technology and INNOVATEC SPA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amkor Technology and INNOVATEC SPA
The main advantage of trading using opposite Amkor Technology and INNOVATEC SPA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amkor Technology position performs unexpectedly, INNOVATEC SPA 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 INNOVATEC SPA will offset losses from the drop in INNOVATEC SPA's long position.| Amkor Technology vs. Taiwan Semiconductor Manufacturing | Amkor Technology vs. Broadcom | Amkor Technology vs. Superior Plus Corp | Amkor Technology vs. SIVERS SEMICONDUCTORS AB |
| INNOVATEC SPA vs. ITALIAN WINE BRANDS | INNOVATEC SPA vs. Amkor Technology | INNOVATEC SPA vs. LION ONE METALS | INNOVATEC SPA vs. SOFI TECHNOLOGIES |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
Other Complementary Tools
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance |