Correlation Between Amkor Technology and Croghan Bancshares

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Can any of the company-specific risk be diversified away by investing in both Amkor Technology and Croghan Bancshares 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 Croghan Bancshares into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Amkor Technology and Croghan Bancshares, you can compare the effects of market volatilities on Amkor Technology and Croghan Bancshares 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 Croghan Bancshares. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amkor Technology and Croghan Bancshares.

Diversification Opportunities for Amkor Technology and Croghan Bancshares

-0.81
  Correlation Coefficient

Pay attention - limited upside

The 3 months correlation between Amkor and Croghan is -0.81. Overlapping area represents the amount of risk that can be diversified away by holding Amkor Technology and Croghan Bancshares in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Croghan Bancshares 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 Croghan Bancshares. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Croghan Bancshares has no effect on the direction of Amkor Technology i.e., Amkor Technology and Croghan Bancshares go up and down completely randomly.

Pair Corralation between Amkor Technology and Croghan Bancshares

Given the investment horizon of 90 days Amkor Technology is expected to generate 0.84 times more return on investment than Croghan Bancshares. However, Amkor Technology is 1.2 times less risky than Croghan Bancshares. It trades about 0.02 of its potential returns per unit of risk. Croghan Bancshares is currently generating about 0.01 per unit of risk. If you would invest  2,518  in Amkor Technology on September 5, 2024 and sell it today you would earn a total of  180.00  from holding Amkor Technology or generate 7.15% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthSignificant
Accuracy84.44%
ValuesDaily Returns

Amkor Technology  vs.  Croghan Bancshares

 Performance 
       Timeline  
Amkor Technology 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days Amkor Technology has generated negative risk-adjusted returns adding no value to investors with long positions. Even with latest inconsistent performance, the Stock's forward-looking signals remain invariable and the latest agitation on Wall Street may also be a sign of long-running gains for the enterprise retail investors.
Croghan Bancshares 

Risk-Adjusted Performance

10 of 100

 
Weak
 
Strong
OK
Compared to the overall equity markets, risk-adjusted returns on investments in Croghan Bancshares are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. Despite fairly unsteady fundamental drivers, Croghan Bancshares may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Amkor Technology and Croghan Bancshares Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Amkor Technology and Croghan Bancshares

The main advantage of trading using opposite Amkor Technology and Croghan Bancshares positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amkor Technology position performs unexpectedly, Croghan Bancshares 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 Croghan Bancshares will offset losses from the drop in Croghan Bancshares' long position.
The idea behind Amkor Technology and Croghan Bancshares pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.

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