Correlation Between Amkor Technology and Marine Products
Can any of the company-specific risk be diversified away by investing in both Amkor Technology and Marine Products 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 Marine Products into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Amkor Technology and Marine Products, you can compare the effects of market volatilities on Amkor Technology and Marine Products 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 Marine Products. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amkor Technology and Marine Products.
Diversification Opportunities for Amkor Technology and Marine Products
-0.37 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Amkor and Marine is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding Amkor Technology and Marine Products in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Marine Products 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 Marine Products. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Marine Products has no effect on the direction of Amkor Technology i.e., Amkor Technology and Marine Products go up and down completely randomly.
Pair Corralation between Amkor Technology and Marine Products
Given the investment horizon of 90 days Amkor Technology is expected to generate 1.39 times less return on investment than Marine Products. In addition to that, Amkor Technology is 1.06 times more volatile than Marine Products. It trades about 0.1 of its total potential returns per unit of risk. Marine Products is currently generating about 0.14 per unit of volatility. If you would invest 930.00 in Marine Products on September 4, 2024 and sell it today you would earn a total of 50.00 from holding Marine Products or generate 5.38% 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. Marine Products
Performance |
| Timeline |
| Amkor Technology |
| Marine Products |
Amkor Technology and Marine Products Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amkor Technology and Marine Products
The main advantage of trading using opposite Amkor Technology and Marine Products positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amkor Technology position performs unexpectedly, Marine Products 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 Marine Products will offset losses from the drop in Marine Products' long position.| Amkor Technology vs. NXP Semiconductors NV | Amkor Technology vs. Analog Devices | Amkor Technology vs. Monolithic Power Systems | Amkor Technology vs. ON Semiconductor |
| Marine Products vs. Thor Industries | Marine Products vs. BRP Inc | Marine Products vs. EZGO Technologies | Marine Products vs. Polaris Industries |
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 Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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