Correlation Between Amkor Technology and FIRST SAVINGS
Can any of the company-specific risk be diversified away by investing in both Amkor Technology and FIRST SAVINGS 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 FIRST SAVINGS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Amkor Technology and FIRST SAVINGS FINL, you can compare the effects of market volatilities on Amkor Technology and FIRST SAVINGS 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 FIRST SAVINGS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amkor Technology and FIRST SAVINGS.
Diversification Opportunities for Amkor Technology and FIRST SAVINGS
-0.7 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Amkor and FIRST is -0.7. Overlapping area represents the amount of risk that can be diversified away by holding Amkor Technology and FIRST SAVINGS FINL in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FIRST SAVINGS FINL 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 FIRST SAVINGS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FIRST SAVINGS FINL has no effect on the direction of Amkor Technology i.e., Amkor Technology and FIRST SAVINGS go up and down completely randomly.
Pair Corralation between Amkor Technology and FIRST SAVINGS
Assuming the 90 days horizon Amkor Technology is expected to under-perform the FIRST SAVINGS. But the stock apears to be less risky and, when comparing its historical volatility, Amkor Technology is 1.21 times less risky than FIRST SAVINGS. The stock trades about -0.07 of its potential returns per unit of risk. The FIRST SAVINGS FINL is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 1,988 in FIRST SAVINGS FINL on October 14, 2024 and sell it today you would earn a total of 332.00 from holding FIRST SAVINGS FINL or generate 16.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Amkor Technology vs. FIRST SAVINGS FINL
Performance |
| Timeline |
| Amkor Technology |
| FIRST SAVINGS FINL |
Amkor Technology and FIRST SAVINGS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amkor Technology and FIRST SAVINGS
The main advantage of trading using opposite Amkor Technology and FIRST SAVINGS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amkor Technology position performs unexpectedly, FIRST SAVINGS 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 FIRST SAVINGS will offset losses from the drop in FIRST SAVINGS's long position.| Amkor Technology vs. WT OFFSHORE | Amkor Technology vs. Nanjing Panda Electronics | Amkor Technology vs. ARROW ELECTRONICS | Amkor Technology vs. Meiko Electronics Co |
| FIRST SAVINGS vs. Amkor Technology | FIRST SAVINGS vs. AAC TECHNOLOGHLDGADR | FIRST SAVINGS vs. GLG LIFE TECH | FIRST SAVINGS vs. Easy Software AG |
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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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