Correlation Between Amkor Technology and Oasis Petroleum
Can any of the company-specific risk be diversified away by investing in both Amkor Technology and Oasis Petroleum 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 Oasis Petroleum into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Amkor Technology and Oasis Petroleum, you can compare the effects of market volatilities on Amkor Technology and Oasis Petroleum 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 Oasis Petroleum. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amkor Technology and Oasis Petroleum.
Diversification Opportunities for Amkor Technology and Oasis Petroleum
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Amkor and Oasis is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Amkor Technology and Oasis Petroleum in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oasis Petroleum 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 Oasis Petroleum. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oasis Petroleum has no effect on the direction of Amkor Technology i.e., Amkor Technology and Oasis Petroleum go up and down completely randomly.
Pair Corralation between Amkor Technology and Oasis Petroleum
Given the investment horizon of 90 days Amkor Technology is expected to generate 0.39 times more return on investment than Oasis Petroleum. However, Amkor Technology is 2.57 times less risky than Oasis Petroleum. It trades about 0.02 of its potential returns per unit of risk. Oasis Petroleum is currently generating about -0.03 per unit of risk. If you would invest 2,661 in Amkor Technology on September 12, 2024 and sell it today you would earn a total of 7.00 from holding Amkor Technology or generate 0.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 31.82% |
| Values | Daily Returns |
Amkor Technology vs. Oasis Petroleum
Performance |
| Timeline |
| Amkor Technology |
| Oasis Petroleum |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Amkor Technology and Oasis Petroleum Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amkor Technology and Oasis Petroleum
The main advantage of trading using opposite Amkor Technology and Oasis Petroleum positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amkor Technology position performs unexpectedly, Oasis Petroleum 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 Oasis Petroleum will offset losses from the drop in Oasis Petroleum's long position.| Amkor Technology vs. Power Integrations | Amkor Technology vs. Diodes Incorporated | Amkor Technology vs. MACOM Technology Solutions | Amkor Technology vs. Cirrus Logic |
| Oasis Petroleum vs. Amgen Inc | Oasis Petroleum vs. IPG Photonics | Oasis Petroleum vs. Alvotech | Oasis Petroleum vs. Amkor Technology |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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