Correlation Between Amkor Technology and Intel
Can any of the company-specific risk be diversified away by investing in both Amkor Technology and Intel 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 Intel into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Amkor Technology and Intel, you can compare the effects of market volatilities on Amkor Technology and Intel 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 Intel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amkor Technology and Intel.
Diversification Opportunities for Amkor Technology and Intel
-0.56 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Amkor and Intel is -0.56. Overlapping area represents the amount of risk that can be diversified away by holding Amkor Technology and Intel in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Intel 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 Intel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Intel has no effect on the direction of Amkor Technology i.e., Amkor Technology and Intel go up and down completely randomly.
Pair Corralation between Amkor Technology and Intel
Assuming the 90 days horizon Amkor Technology is expected to under-perform the Intel. But the stock apears to be less risky and, when comparing its historical volatility, Amkor Technology is 1.18 times less risky than Intel. The stock trades about -0.11 of its potential returns per unit of risk. The Intel is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 2,130 in Intel on August 29, 2024 and sell it today you would earn a total of 172.00 from holding Intel or generate 8.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Amkor Technology vs. Intel
Performance |
| Timeline |
| Amkor Technology |
| Intel |
Amkor Technology and Intel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amkor Technology and Intel
The main advantage of trading using opposite Amkor Technology and Intel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amkor Technology position performs unexpectedly, Intel 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 Intel will offset losses from the drop in Intel's long position.| Amkor Technology vs. NVIDIA | Amkor Technology vs. NVIDIA | Amkor Technology vs. QUALCOMM Incorporated | Amkor Technology 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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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