Correlation Between Amkor Technology and Global Partner
Can any of the company-specific risk be diversified away by investing in both Amkor Technology and Global Partner 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 Global Partner into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Amkor Technology and Global Partner Acq, you can compare the effects of market volatilities on Amkor Technology and Global Partner 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 Global Partner. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amkor Technology and Global Partner.
Diversification Opportunities for Amkor Technology and Global Partner
-0.04 | Correlation Coefficient |
Good diversification
The 3 months correlation between Amkor and Global is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding Amkor Technology and Global Partner Acq in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Global Partner Acq 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 Global Partner. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Global Partner Acq has no effect on the direction of Amkor Technology i.e., Amkor Technology and Global Partner go up and down completely randomly.
Pair Corralation between Amkor Technology and Global Partner
If you would invest 2,513 in Amkor Technology on October 20, 2024 and sell it today you would earn a total of 78.00 from holding Amkor Technology or generate 3.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 5.0% |
| Values | Daily Returns |
Amkor Technology vs. Global Partner Acq
Performance |
| Timeline |
| Amkor Technology |
| Global Partner Acq |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Amkor Technology and Global Partner Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amkor Technology and Global Partner
The main advantage of trading using opposite Amkor Technology and Global Partner positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amkor Technology position performs unexpectedly, Global Partner 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 Global Partner will offset losses from the drop in Global Partner's long position.| Amkor Technology vs. Power Integrations | Amkor Technology vs. Diodes Incorporated | Amkor Technology vs. MACOM Technology Solutions | Amkor Technology vs. Cirrus Logic |
| Global Partner vs. Glorywin Entertainment Group | Global Partner vs. Sellas Life Sciences | Global Partner vs. BioNTech SE | Global Partner vs. Flutter Entertainment plc |
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 Stocks Directory module to find actively traded stocks across global markets.
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