Correlation Between Amkor Technology and Atmus Filtration
Can any of the company-specific risk be diversified away by investing in both Amkor Technology and Atmus Filtration 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 Atmus Filtration into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Amkor Technology and Atmus Filtration Technologies, you can compare the effects of market volatilities on Amkor Technology and Atmus Filtration 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 Atmus Filtration. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amkor Technology and Atmus Filtration.
Diversification Opportunities for Amkor Technology and Atmus Filtration
0.22 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Amkor and Atmus is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding Amkor Technology and Atmus Filtration Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Atmus Filtration Tec 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 Atmus Filtration. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Atmus Filtration Tec has no effect on the direction of Amkor Technology i.e., Amkor Technology and Atmus Filtration go up and down completely randomly.
Pair Corralation between Amkor Technology and Atmus Filtration
Given the investment horizon of 90 days Amkor Technology is expected to generate 1.58 times more return on investment than Atmus Filtration. However, Amkor Technology is 1.58 times more volatile than Atmus Filtration Technologies. It trades about -0.09 of its potential returns per unit of risk. Atmus Filtration Technologies is currently generating about -0.16 per unit of risk. If you would invest 2,372 in Amkor Technology on November 27, 2024 and sell it today you would lose (148.00) from holding Amkor Technology or give up 6.24% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Amkor Technology vs. Atmus Filtration Technologies
Performance |
| Timeline |
| Amkor Technology |
| Atmus Filtration Tec |
Amkor Technology and Atmus Filtration Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amkor Technology and Atmus Filtration
The main advantage of trading using opposite Amkor Technology and Atmus Filtration positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amkor Technology position performs unexpectedly, Atmus Filtration 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 Atmus Filtration will offset losses from the drop in Atmus Filtration's long position.| Amkor Technology vs. Power Integrations | Amkor Technology vs. Diodes Incorporated | Amkor Technology vs. MACOM Technology Solutions | Amkor Technology vs. Cirrus Logic |
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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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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