Correlation Between Amkor Technology and TOREX SEMICONDUCTOR
Can any of the company-specific risk be diversified away by investing in both Amkor Technology and TOREX SEMICONDUCTOR 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 TOREX SEMICONDUCTOR into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Amkor Technology and TOREX SEMICONDUCTOR LTD, you can compare the effects of market volatilities on Amkor Technology and TOREX SEMICONDUCTOR 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 TOREX SEMICONDUCTOR. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amkor Technology and TOREX SEMICONDUCTOR.
Diversification Opportunities for Amkor Technology and TOREX SEMICONDUCTOR
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Amkor and TOREX is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding Amkor Technology and TOREX SEMICONDUCTOR LTD in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TOREX SEMICONDUCTOR LTD 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 TOREX SEMICONDUCTOR. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TOREX SEMICONDUCTOR LTD has no effect on the direction of Amkor Technology i.e., Amkor Technology and TOREX SEMICONDUCTOR go up and down completely randomly.
Pair Corralation between Amkor Technology and TOREX SEMICONDUCTOR
Assuming the 90 days horizon Amkor Technology is expected to generate 1.32 times more return on investment than TOREX SEMICONDUCTOR. However, Amkor Technology is 1.32 times more volatile than TOREX SEMICONDUCTOR LTD. It trades about -0.12 of its potential returns per unit of risk. TOREX SEMICONDUCTOR LTD is currently generating about -0.24 per unit of risk. If you would invest 2,760 in Amkor Technology on August 27, 2024 and sell it today you would lose (207.00) from holding Amkor Technology or give up 7.5% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Amkor Technology vs. TOREX SEMICONDUCTOR LTD
Performance |
| Timeline |
| Amkor Technology |
| TOREX SEMICONDUCTOR LTD |
Amkor Technology and TOREX SEMICONDUCTOR Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amkor Technology and TOREX SEMICONDUCTOR
The main advantage of trading using opposite Amkor Technology and TOREX SEMICONDUCTOR positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amkor Technology position performs unexpectedly, TOREX SEMICONDUCTOR 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 TOREX SEMICONDUCTOR will offset losses from the drop in TOREX SEMICONDUCTOR's long position.| Amkor Technology vs. NVIDIA | Amkor Technology vs. NVIDIA | Amkor Technology vs. QUALCOMM Incorporated | Amkor Technology vs. Intel |
| TOREX SEMICONDUCTOR vs. NVIDIA | TOREX SEMICONDUCTOR vs. NVIDIA | TOREX SEMICONDUCTOR vs. QUALCOMM Incorporated | TOREX SEMICONDUCTOR vs. Intel |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
Other Complementary Tools
| CEOs Directory Screen CEOs from public companies around the world | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities |