Correlation Between Amkor Technology and Cardinal Health
Can any of the company-specific risk be diversified away by investing in both Amkor Technology and Cardinal Health 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 Cardinal Health into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Amkor Technology and Cardinal Health, you can compare the effects of market volatilities on Amkor Technology and Cardinal Health 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 Cardinal Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amkor Technology and Cardinal Health.
Diversification Opportunities for Amkor Technology and Cardinal Health
-0.69 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Amkor and Cardinal is -0.69. Overlapping area represents the amount of risk that can be diversified away by holding Amkor Technology and Cardinal Health in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cardinal Health 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 Cardinal Health. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cardinal Health has no effect on the direction of Amkor Technology i.e., Amkor Technology and Cardinal Health go up and down completely randomly.
Pair Corralation between Amkor Technology and Cardinal Health
Given the investment horizon of 90 days Amkor Technology is expected to under-perform the Cardinal Health. In addition to that, Amkor Technology is 2.49 times more volatile than Cardinal Health. It trades about -0.03 of its total potential returns per unit of risk. Cardinal Health is currently generating about 0.13 per unit of volatility. If you would invest 9,855 in Cardinal Health on September 1, 2024 and sell it today you would earn a total of 2,369 from holding Cardinal Health or generate 24.04% 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. Cardinal Health
Performance |
| Timeline |
| Amkor Technology |
| Cardinal Health |
Amkor Technology and Cardinal Health Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amkor Technology and Cardinal Health
The main advantage of trading using opposite Amkor Technology and Cardinal Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amkor Technology position performs unexpectedly, Cardinal Health 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 Cardinal Health will offset losses from the drop in Cardinal Health's long position.| Amkor Technology vs. NXP Semiconductors NV | Amkor Technology vs. GSI Technology | Amkor Technology vs. MaxLinear | Amkor Technology vs. Texas Instruments Incorporated |
| Cardinal Health vs. Humana Inc | Cardinal Health vs. Cigna Corp | Cardinal Health vs. Elevance Health | Cardinal Health vs. Centene Corp |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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