Correlation Between Amkor Technology and Mosaic
Can any of the company-specific risk be diversified away by investing in both Amkor Technology and Mosaic 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 Mosaic into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Amkor Technology and The Mosaic, you can compare the effects of market volatilities on Amkor Technology and Mosaic 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 Mosaic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amkor Technology and Mosaic.
Diversification Opportunities for Amkor Technology and Mosaic
-0.04 | Correlation Coefficient |
Good diversification
The 3 months correlation between Amkor and Mosaic is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding Amkor Technology and The Mosaic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mosaic 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 Mosaic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mosaic has no effect on the direction of Amkor Technology i.e., Amkor Technology and Mosaic go up and down completely randomly.
Pair Corralation between Amkor Technology and Mosaic
Given the investment horizon of 90 days Amkor Technology is expected to generate 0.77 times more return on investment than Mosaic. However, Amkor Technology is 1.3 times less risky than Mosaic. It trades about 0.12 of its potential returns per unit of risk. The Mosaic is currently generating about -0.04 per unit of risk. If you would invest 2,602 in Amkor Technology on September 4, 2024 and sell it today you would earn a total of 126.00 from holding Amkor Technology or generate 4.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Amkor Technology vs. The Mosaic
Performance |
| Timeline |
| Amkor Technology |
| Mosaic |
Amkor Technology and Mosaic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amkor Technology and Mosaic
The main advantage of trading using opposite Amkor Technology and Mosaic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amkor Technology position performs unexpectedly, Mosaic 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 Mosaic will offset losses from the drop in Mosaic's long position.| Amkor Technology vs. NXP Semiconductors NV | Amkor Technology vs. Analog Devices | Amkor Technology vs. Monolithic Power Systems | Amkor Technology vs. ON Semiconductor |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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