Correlation Between Amkor Technology and Mastercard
Can any of the company-specific risk be diversified away by investing in both Amkor Technology and Mastercard 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 Mastercard into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Amkor Technology and Mastercard, you can compare the effects of market volatilities on Amkor Technology and Mastercard 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 Mastercard. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amkor Technology and Mastercard.
Diversification Opportunities for Amkor Technology and Mastercard
-0.61 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Amkor and Mastercard is -0.61. Overlapping area represents the amount of risk that can be diversified away by holding Amkor Technology and Mastercard in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mastercard 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 Mastercard. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mastercard has no effect on the direction of Amkor Technology i.e., Amkor Technology and Mastercard go up and down completely randomly.
Pair Corralation between Amkor Technology and Mastercard
Assuming the 90 days horizon Amkor Technology is expected to under-perform the Mastercard. In addition to that, Amkor Technology is 1.87 times more volatile than Mastercard. It trades about -0.06 of its total potential returns per unit of risk. Mastercard is currently generating about 0.19 per unit of volatility. If you would invest 43,721 in Mastercard on September 3, 2024 and sell it today you would earn a total of 6,959 from holding Mastercard or generate 15.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Amkor Technology vs. Mastercard
Performance |
| Timeline |
| Amkor Technology |
| Mastercard |
Amkor Technology and Mastercard Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amkor Technology and Mastercard
The main advantage of trading using opposite Amkor Technology and Mastercard positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amkor Technology position performs unexpectedly, Mastercard 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 Mastercard will offset losses from the drop in Mastercard's long position.| Amkor Technology vs. NVIDIA | Amkor Technology vs. Taiwan Semiconductor Manufacturing | Amkor Technology vs. Advanced Micro Devices | Amkor Technology vs. Intel |
| Mastercard vs. Amkor Technology | Mastercard vs. LION ONE METALS | Mastercard vs. Vishay Intertechnology | Mastercard vs. ADRIATIC METALS LS 013355 |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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