Correlation Between Amkor Technology and Apple
Can any of the company-specific risk be diversified away by investing in both Amkor Technology and Apple 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 Apple into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Amkor Technology and Apple Inc, you can compare the effects of market volatilities on Amkor Technology and Apple 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 Apple. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amkor Technology and Apple.
Diversification Opportunities for Amkor Technology and Apple
-0.19 | Correlation Coefficient |
Good diversification
The 3 months correlation between Amkor and Apple is -0.19. Overlapping area represents the amount of risk that can be diversified away by holding Amkor Technology and Apple Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Apple Inc 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 Apple. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Apple Inc has no effect on the direction of Amkor Technology i.e., Amkor Technology and Apple go up and down completely randomly.
Pair Corralation between Amkor Technology and Apple
Assuming the 90 days horizon Amkor Technology is expected to generate 1.23 times more return on investment than Apple. However, Amkor Technology is 1.23 times more volatile than Apple Inc. It trades about 0.14 of its potential returns per unit of risk. Apple Inc is currently generating about -0.43 per unit of risk. If you would invest 2,415 in Amkor Technology on October 22, 2024 and sell it today you would earn a total of 83.00 from holding Amkor Technology or generate 3.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Amkor Technology vs. Apple Inc
Performance |
| Timeline |
| Amkor Technology |
| Apple Inc |
Amkor Technology and Apple Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amkor Technology and Apple
The main advantage of trading using opposite Amkor Technology and Apple positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amkor Technology position performs unexpectedly, Apple 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 Apple will offset losses from the drop in Apple's long position.| Amkor Technology vs. ELL ENVIRONHLDGS HD 0001 | Amkor Technology vs. ecotel communication ag | Amkor Technology vs. Zoom Video Communications | Amkor Technology vs. Entravision Communications |
| Apple vs. Aya Gold Silver | Apple vs. COMBA TELECOM SYST | Apple vs. Zijin Mining Group | Apple vs. Chunghwa Telecom Co |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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