Correlation Between Amkor Technology and ChipMOS Technologies
Can any of the company-specific risk be diversified away by investing in both Amkor Technology and ChipMOS Technologies 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 ChipMOS Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Amkor Technology and ChipMOS Technologies, you can compare the effects of market volatilities on Amkor Technology and ChipMOS Technologies 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 ChipMOS Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amkor Technology and ChipMOS Technologies.
Diversification Opportunities for Amkor Technology and ChipMOS Technologies
-0.31 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Amkor and ChipMOS is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding Amkor Technology and ChipMOS Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ChipMOS Technologies 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 ChipMOS Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ChipMOS Technologies has no effect on the direction of Amkor Technology i.e., Amkor Technology and ChipMOS Technologies go up and down completely randomly.
Pair Corralation between Amkor Technology and ChipMOS Technologies
Given the investment horizon of 90 days Amkor Technology is expected to under-perform the ChipMOS Technologies. In addition to that, Amkor Technology is 1.58 times more volatile than ChipMOS Technologies. It trades about -0.05 of its total potential returns per unit of risk. ChipMOS Technologies is currently generating about -0.08 per unit of volatility. If you would invest 2,875 in ChipMOS Technologies on December 2, 2024 and sell it today you would lose (1,016) from holding ChipMOS Technologies or give up 35.34% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Amkor Technology vs. ChipMOS Technologies
Performance |
| Timeline |
| Amkor Technology |
| ChipMOS Technologies |
Amkor Technology and ChipMOS Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amkor Technology and ChipMOS Technologies
The main advantage of trading using opposite Amkor Technology and ChipMOS Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amkor Technology position performs unexpectedly, ChipMOS Technologies 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 ChipMOS Technologies will offset losses from the drop in ChipMOS Technologies' long position.| Amkor Technology vs. Power Integrations | ||
| Amkor Technology vs. Diodes Incorporated | ||
| Amkor Technology vs. MACOM Technology Solutions | ||
| Amkor Technology vs. Cirrus Logic |
| ChipMOS Technologies vs. Nano Labs | ||
| ChipMOS Technologies vs. Wisekey International Holding | ||
| ChipMOS Technologies vs. Silicon Motion Technology | ||
| ChipMOS Technologies vs. United Microelectronics |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
Other Complementary Tools
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal |