Correlation Between Amkor Technology and Argo Group
Can any of the company-specific risk be diversified away by investing in both Amkor Technology and Argo Group 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 Argo Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Amkor Technology and Argo Group International, you can compare the effects of market volatilities on Amkor Technology and Argo Group 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 Argo Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amkor Technology and Argo Group.
Diversification Opportunities for Amkor Technology and Argo Group
-0.75 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Amkor and Argo is -0.75. Overlapping area represents the amount of risk that can be diversified away by holding Amkor Technology and Argo Group International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Argo Group International 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 Argo Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Argo Group International has no effect on the direction of Amkor Technology i.e., Amkor Technology and Argo Group go up and down completely randomly.
Pair Corralation between Amkor Technology and Argo Group
Given the investment horizon of 90 days Amkor Technology is expected to under-perform the Argo Group. In addition to that, Amkor Technology is 9.33 times more volatile than Argo Group International. It trades about -0.16 of its total potential returns per unit of risk. Argo Group International is currently generating about 0.24 per unit of volatility. If you would invest 2,478 in Argo Group International on August 28, 2024 and sell it today you would earn a total of 34.00 from holding Argo Group International or generate 1.37% 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. Argo Group International
Performance |
| Timeline |
| Amkor Technology |
| Argo Group International |
Amkor Technology and Argo Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amkor Technology and Argo Group
The main advantage of trading using opposite Amkor Technology and Argo Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amkor Technology position performs unexpectedly, Argo Group 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 Argo Group will offset losses from the drop in Argo Group's long position.| Amkor Technology vs. Power Integrations | Amkor Technology vs. Diodes Incorporated | Amkor Technology vs. MACOM Technology Solutions | Amkor Technology vs. Cirrus Logic |
| Argo Group vs. Newpark Resources | Argo Group vs. Hurco Companies | Argo Group vs. Dream Finders Homes | Argo Group vs. Park Ohio Holdings |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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