Correlation Between Amkor Technology and CHINA CONBANK

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Can any of the company-specific risk be diversified away by investing in both Amkor Technology and CHINA CONBANK 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 CHINA CONBANK into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Amkor Technology and CHINA BANK ADR20, you can compare the effects of market volatilities on Amkor Technology and CHINA CONBANK 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 CHINA CONBANK. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amkor Technology and CHINA CONBANK.

Diversification Opportunities for Amkor Technology and CHINA CONBANK

-0.45
  Correlation Coefficient

Very good diversification

The 3 months correlation between Amkor and CHINA is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding Amkor Technology and CHINA BANK ADR20 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CHINA BANK ADR20 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 CHINA CONBANK. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CHINA BANK ADR20 has no effect on the direction of Amkor Technology i.e., Amkor Technology and CHINA CONBANK go up and down completely randomly.

Pair Corralation between Amkor Technology and CHINA CONBANK

Assuming the 90 days horizon Amkor Technology is expected to generate 32.44 times less return on investment than CHINA CONBANK. In addition to that, Amkor Technology is 1.99 times more volatile than CHINA BANK ADR20. It trades about 0.0 of its total potential returns per unit of risk. CHINA BANK ADR20 is currently generating about 0.29 per unit of volatility. If you would invest  1,380  in CHINA BANK ADR20 on September 14, 2024 and sell it today you would earn a total of  100.00  from holding CHINA BANK ADR20 or generate 7.25% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthVery Weak
Accuracy100.0%
ValuesDaily Returns

Amkor Technology  vs.  CHINA BANK ADR20

 Performance 
       Timeline  
Amkor Technology 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days Amkor Technology has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest fragile performance, the Stock's basic indicators remain stable and the current disturbance on Wall Street may also be a sign of long-run gains for the company stockholders.
CHINA BANK ADR20 

Risk-Adjusted Performance

14 of 100

 
Weak
 
Strong
Good
Compared to the overall equity markets, risk-adjusted returns on investments in CHINA BANK ADR20 are ranked lower than 14 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, CHINA CONBANK reported solid returns over the last few months and may actually be approaching a breakup point.

Amkor Technology and CHINA CONBANK Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Amkor Technology and CHINA CONBANK

The main advantage of trading using opposite Amkor Technology and CHINA CONBANK positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amkor Technology position performs unexpectedly, CHINA CONBANK 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 CHINA CONBANK will offset losses from the drop in CHINA CONBANK's long position.
The idea behind Amkor Technology and CHINA BANK ADR20 pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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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 Stocks Directory module to find actively traded stocks across global markets.

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