Correlation Between Amkor Technology and Microsoft
Can any of the company-specific risk be diversified away by investing in both Amkor Technology and Microsoft 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 Microsoft into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Amkor Technology and Microsoft, you can compare the effects of market volatilities on Amkor Technology and Microsoft 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 Microsoft. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amkor Technology and Microsoft.
Diversification Opportunities for Amkor Technology and Microsoft
-0.37 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Amkor and Microsoft is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding Amkor Technology and Microsoft in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Microsoft 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 Microsoft. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Microsoft has no effect on the direction of Amkor Technology i.e., Amkor Technology and Microsoft go up and down completely randomly.
Pair Corralation between Amkor Technology and Microsoft
Assuming the 90 days horizon Amkor Technology is expected to under-perform the Microsoft. In addition to that, Amkor Technology is 1.68 times more volatile than Microsoft. It trades about -0.04 of its total potential returns per unit of risk. Microsoft is currently generating about 0.06 per unit of volatility. If you would invest 38,284 in Microsoft on August 26, 2024 and sell it today you would earn a total of 1,241 from holding Microsoft or generate 3.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Amkor Technology vs. Microsoft
Performance |
| Timeline |
| Amkor Technology |
| Microsoft |
Amkor Technology and Microsoft Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amkor Technology and Microsoft
The main advantage of trading using opposite Amkor Technology and Microsoft positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amkor Technology position performs unexpectedly, Microsoft 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 Microsoft will offset losses from the drop in Microsoft's long position.| Amkor Technology vs. NVIDIA | Amkor Technology vs. NVIDIA | Amkor Technology vs. QUALCOMM Incorporated | Amkor Technology vs. Advanced Micro Devices |
| Microsoft vs. X FAB Silicon Foundries | Microsoft vs. Suntory Beverage Food | Microsoft vs. Amkor Technology | Microsoft vs. DXC Technology Co |
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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
Other Complementary Tools
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk |