Correlation Between Amkor Technology and Science Applications
Can any of the company-specific risk be diversified away by investing in both Amkor Technology and Science Applications 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 Science Applications into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Amkor Technology and Science Applications International, you can compare the effects of market volatilities on Amkor Technology and Science Applications 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 Science Applications. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amkor Technology and Science Applications.
Diversification Opportunities for Amkor Technology and Science Applications
-0.16 | Correlation Coefficient |
Good diversification
The 3 months correlation between Amkor and Science is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding Amkor Technology and Science Applications Internati in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Science Applications 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 Science Applications. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Science Applications has no effect on the direction of Amkor Technology i.e., Amkor Technology and Science Applications go up and down completely randomly.
Pair Corralation between Amkor Technology and Science Applications
Assuming the 90 days horizon Amkor Technology is expected to generate 0.7 times more return on investment than Science Applications. However, Amkor Technology is 1.43 times less risky than Science Applications. It trades about -0.13 of its potential returns per unit of risk. Science Applications International is currently generating about -0.12 per unit of risk. If you would invest 2,760 in Amkor Technology on August 29, 2024 and sell it today you would lose (236.00) from holding Amkor Technology or give up 8.55% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Amkor Technology vs. Science Applications Internati
Performance |
| Timeline |
| Amkor Technology |
| Science Applications |
Amkor Technology and Science Applications Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amkor Technology and Science Applications
The main advantage of trading using opposite Amkor Technology and Science Applications positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amkor Technology position performs unexpectedly, Science Applications 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 Science Applications will offset losses from the drop in Science Applications' long position.| Amkor Technology vs. NVIDIA | Amkor Technology vs. Texas Instruments Incorporated | Amkor Technology vs. Advanced Micro Devices | Amkor Technology vs. Advanced Micro Devices |
| Science Applications vs. PKSHA TECHNOLOGY INC | Science Applications vs. Amkor Technology | Science Applications vs. ULTRA CLEAN HLDGS | Science Applications vs. Goosehead Insurance |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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