Correlation Between Amkor Technology and MAG SILVER
Can any of the company-specific risk be diversified away by investing in both Amkor Technology and MAG SILVER 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 MAG SILVER into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Amkor Technology and MAG SILVER, you can compare the effects of market volatilities on Amkor Technology and MAG SILVER 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 MAG SILVER. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amkor Technology and MAG SILVER.
Diversification Opportunities for Amkor Technology and MAG SILVER
0.36 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Amkor and MAG is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding Amkor Technology and MAG SILVER in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MAG SILVER 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 MAG SILVER. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MAG SILVER has no effect on the direction of Amkor Technology i.e., Amkor Technology and MAG SILVER go up and down completely randomly.
Pair Corralation between Amkor Technology and MAG SILVER
Assuming the 90 days horizon Amkor Technology is expected to under-perform the MAG SILVER. In addition to that, Amkor Technology is 1.19 times more volatile than MAG SILVER. It trades about -0.06 of its total potential returns per unit of risk. MAG SILVER is currently generating about 0.07 per unit of volatility. If you would invest 1,209 in MAG SILVER on October 25, 2024 and sell it today you would earn a total of 236.00 from holding MAG SILVER or generate 19.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Amkor Technology vs. MAG SILVER
Performance |
| Timeline |
| Amkor Technology |
| MAG SILVER |
Amkor Technology and MAG SILVER Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amkor Technology and MAG SILVER
The main advantage of trading using opposite Amkor Technology and MAG SILVER positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amkor Technology position performs unexpectedly, MAG SILVER 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 MAG SILVER will offset losses from the drop in MAG SILVER's long position.| Amkor Technology vs. NVIDIA | Amkor Technology vs. Taiwan Semiconductor Manufacturing | Amkor Technology vs. Broadcom | Amkor Technology vs. QUALCOMM Incorporated |
| MAG SILVER vs. Summit Hotel Properties | MAG SILVER vs. Tower Semiconductor | MAG SILVER vs. UNIVMUSIC GRPADR050 | MAG SILVER vs. BE Semiconductor Industries |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
Other Complementary Tools
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance |