Correlation Between Amkor Technology and Linkage Global
Can any of the company-specific risk be diversified away by investing in both Amkor Technology and Linkage Global 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 Linkage Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Amkor Technology and Linkage Global Ordinary, you can compare the effects of market volatilities on Amkor Technology and Linkage Global 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 Linkage Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amkor Technology and Linkage Global.
Diversification Opportunities for Amkor Technology and Linkage Global
0.4 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Amkor and Linkage is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding Amkor Technology and Linkage Global Ordinary in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Linkage Global Ordinary 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 Linkage Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Linkage Global Ordinary has no effect on the direction of Amkor Technology i.e., Amkor Technology and Linkage Global go up and down completely randomly.
Pair Corralation between Amkor Technology and Linkage Global
Given the investment horizon of 90 days Amkor Technology is expected to generate 0.34 times more return on investment than Linkage Global. However, Amkor Technology is 2.91 times less risky than Linkage Global. It trades about 0.12 of its potential returns per unit of risk. Linkage Global Ordinary is currently generating about -0.25 per unit of risk. If you would invest 2,551 in Amkor Technology on September 14, 2024 and sell it today you would earn a total of 118.00 from holding Amkor Technology or generate 4.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Amkor Technology vs. Linkage Global Ordinary
Performance |
| Timeline |
| Amkor Technology |
| Linkage Global Ordinary |
Amkor Technology and Linkage Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amkor Technology and Linkage Global
The main advantage of trading using opposite Amkor Technology and Linkage Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amkor Technology position performs unexpectedly, Linkage Global 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 Linkage Global will offset losses from the drop in Linkage Global's long position.| Amkor Technology vs. Power Integrations | Amkor Technology vs. Diodes Incorporated | Amkor Technology vs. MACOM Technology Solutions | Amkor Technology vs. Cirrus Logic |
| Linkage Global vs. Twilio Inc | Linkage Global vs. Getty Images Holdings | Linkage Global vs. Baidu Inc | Linkage Global vs. Snap Inc |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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