Correlation Between Amkor Technology and Align Technology
Can any of the company-specific risk be diversified away by investing in both Amkor Technology and Align Technology 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 Align Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Amkor Technology and Align Technology, you can compare the effects of market volatilities on Amkor Technology and Align Technology 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 Align Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amkor Technology and Align Technology.
Diversification Opportunities for Amkor Technology and Align Technology
0.29 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Amkor and Align is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding Amkor Technology and Align Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Align Technology 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 Align Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Align Technology has no effect on the direction of Amkor Technology i.e., Amkor Technology and Align Technology go up and down completely randomly.
Pair Corralation between Amkor Technology and Align Technology
Assuming the 90 days horizon Amkor Technology is expected to under-perform the Align Technology. In addition to that, Amkor Technology is 1.28 times more volatile than Align Technology. It trades about -0.01 of its total potential returns per unit of risk. Align Technology is currently generating about 0.25 per unit of volatility. If you would invest 19,620 in Align Technology on August 30, 2024 and sell it today you would earn a total of 1,960 from holding Align Technology or generate 9.99% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Amkor Technology vs. Align Technology
Performance |
| Timeline |
| Amkor Technology |
| Align Technology |
Amkor Technology and Align Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amkor Technology and Align Technology
The main advantage of trading using opposite Amkor Technology and Align Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amkor Technology position performs unexpectedly, Align Technology 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 Align Technology will offset losses from the drop in Align Technology's long position.| Amkor Technology vs. NVIDIA | Amkor Technology vs. Texas Instruments Incorporated | Amkor Technology vs. Advanced Micro Devices | Amkor Technology vs. Advanced Micro Devices |
| Align Technology vs. Abbott Laboratories | Align Technology vs. Medtronic PLC | Align Technology vs. Stryker | Align Technology vs. Boston Scientific |
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 Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
Other Complementary Tools
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency |