Correlation Between Amkor Technology and Kontoor Brands
Can any of the company-specific risk be diversified away by investing in both Amkor Technology and Kontoor Brands 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 Kontoor Brands into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Amkor Technology and Kontoor Brands, you can compare the effects of market volatilities on Amkor Technology and Kontoor Brands 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 Kontoor Brands. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amkor Technology and Kontoor Brands.
Diversification Opportunities for Amkor Technology and Kontoor Brands
0.42 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Amkor and Kontoor is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding Amkor Technology and Kontoor Brands in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kontoor Brands 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 Kontoor Brands. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kontoor Brands has no effect on the direction of Amkor Technology i.e., Amkor Technology and Kontoor Brands go up and down completely randomly.
Pair Corralation between Amkor Technology and Kontoor Brands
Given the investment horizon of 90 days Amkor Technology is expected to generate 0.78 times more return on investment than Kontoor Brands. However, Amkor Technology is 1.29 times less risky than Kontoor Brands. It trades about -0.13 of its potential returns per unit of risk. Kontoor Brands is currently generating about -0.23 per unit of risk. If you would invest 2,372 in Amkor Technology on November 28, 2024 and sell it today you would lose (200.00) from holding Amkor Technology or give up 8.43% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Amkor Technology vs. Kontoor Brands
Performance |
| Timeline |
| Amkor Technology |
| Kontoor Brands |
Amkor Technology and Kontoor Brands Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amkor Technology and Kontoor Brands
The main advantage of trading using opposite Amkor Technology and Kontoor Brands positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amkor Technology position performs unexpectedly, Kontoor Brands 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 Kontoor Brands will offset losses from the drop in Kontoor Brands' long position.| Amkor Technology vs. Power Integrations | Amkor Technology vs. Diodes Incorporated | Amkor Technology vs. MACOM Technology Solutions | Amkor Technology vs. Cirrus Logic |
| Kontoor Brands vs. Vince Holding Corp | Kontoor Brands vs. Ermenegildo Zegna NV | Kontoor Brands vs. Columbia Sportswear | Kontoor Brands vs. Gildan Activewear |
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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
Other Complementary Tools
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Stocks Directory Find actively traded stocks across global markets | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas |