Correlation Between Amkor Technology and Thai Oil
Can any of the company-specific risk be diversified away by investing in both Amkor Technology and Thai Oil 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 Thai Oil into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Amkor Technology and Thai Oil Public, you can compare the effects of market volatilities on Amkor Technology and Thai Oil 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 Thai Oil. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amkor Technology and Thai Oil.
Diversification Opportunities for Amkor Technology and Thai Oil
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Amkor and Thai is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Amkor Technology and Thai Oil Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Thai Oil Public 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 Thai Oil. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Thai Oil Public has no effect on the direction of Amkor Technology i.e., Amkor Technology and Thai Oil go up and down completely randomly.
Pair Corralation between Amkor Technology and Thai Oil
Assuming the 90 days horizon Amkor Technology is expected to generate 0.79 times more return on investment than Thai Oil. However, Amkor Technology is 1.27 times less risky than Thai Oil. It trades about -0.03 of its potential returns per unit of risk. Thai Oil Public is currently generating about -0.05 per unit of risk. If you would invest 2,533 in Amkor Technology on September 12, 2024 and sell it today you would lose (54.00) from holding Amkor Technology or give up 2.13% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Amkor Technology vs. Thai Oil Public
Performance |
| Timeline |
| Amkor Technology |
| Thai Oil Public |
Amkor Technology and Thai Oil Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amkor Technology and Thai Oil
The main advantage of trading using opposite Amkor Technology and Thai Oil positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amkor Technology position performs unexpectedly, Thai Oil 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 Thai Oil will offset losses from the drop in Thai Oil's long position.| Amkor Technology vs. Taiwan Semiconductor Manufacturing | Amkor Technology vs. Broadcom | Amkor Technology vs. Superior Plus Corp | Amkor Technology vs. SIVERS SEMICONDUCTORS AB |
| Thai Oil vs. EVS Broadcast Equipment | Thai Oil vs. TRAINLINE PLC LS | Thai Oil vs. COPLAND ROAD CAPITAL | Thai Oil vs. Thai Beverage Public |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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