Correlation Between Amkor Technology and ASE Industrial
Can any of the company-specific risk be diversified away by investing in both Amkor Technology and ASE Industrial 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 ASE Industrial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Amkor Technology and ASE Industrial Holding, you can compare the effects of market volatilities on Amkor Technology and ASE Industrial 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 ASE Industrial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amkor Technology and ASE Industrial.
Diversification Opportunities for Amkor Technology and ASE Industrial
0.42 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Amkor and ASE is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding Amkor Technology and ASE Industrial Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ASE Industrial Holding 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 ASE Industrial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ASE Industrial Holding has no effect on the direction of Amkor Technology i.e., Amkor Technology and ASE Industrial go up and down completely randomly.
Pair Corralation between Amkor Technology and ASE Industrial
Given the investment horizon of 90 days Amkor Technology is expected to generate 2.03 times less return on investment than ASE Industrial. But when comparing it to its historical volatility, Amkor Technology is 1.41 times less risky than ASE Industrial. It trades about 0.1 of its potential returns per unit of risk. ASE Industrial Holding is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest 1,000.00 in ASE Industrial Holding on October 21, 2024 and sell it today you would earn a total of 52.00 from holding ASE Industrial Holding or generate 5.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Amkor Technology vs. ASE Industrial Holding
Performance |
| Timeline |
| Amkor Technology |
| ASE Industrial Holding |
Amkor Technology and ASE Industrial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amkor Technology and ASE Industrial
The main advantage of trading using opposite Amkor Technology and ASE Industrial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amkor Technology position performs unexpectedly, ASE Industrial 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 ASE Industrial will offset losses from the drop in ASE Industrial's long position.| Amkor Technology vs. Power Integrations | Amkor Technology vs. Diodes Incorporated | Amkor Technology vs. MACOM Technology Solutions | Amkor Technology vs. Cirrus Logic |
| ASE Industrial vs. United Microelectronics | ASE Industrial vs. Amkor Technology | ASE Industrial vs. Himax Technologies | ASE Industrial vs. Chunghwa Telecom 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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
Other Complementary Tools
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. |