Correlation Between Amkor Technology and Omni Health

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Can any of the company-specific risk be diversified away by investing in both Amkor Technology and Omni Health 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 Omni Health into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Amkor Technology and Omni Health, you can compare the effects of market volatilities on Amkor Technology and Omni Health 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 Omni Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amkor Technology and Omni Health.

Diversification Opportunities for Amkor Technology and Omni Health

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  Correlation Coefficient

Pay attention - limited upside

The 3 months correlation between Amkor and Omni is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Amkor Technology and Omni Health in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Omni Health 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 Omni Health. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Omni Health has no effect on the direction of Amkor Technology i.e., Amkor Technology and Omni Health go up and down completely randomly.

Pair Corralation between Amkor Technology and Omni Health

Given the investment horizon of 90 days Amkor Technology is expected to generate 44.01 times less return on investment than Omni Health. But when comparing it to its historical volatility, Amkor Technology is 15.85 times less risky than Omni Health. It trades about 0.02 of its potential returns per unit of risk. Omni Health is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest  0.00  in Omni Health on August 30, 2024 and sell it today you would earn a total of  0.00  from holding Omni Health or generate 9.223372036854776E16% return on investment over 90 days.
Time Period3 Months [change]
DirectionFlat 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

Amkor Technology  vs.  Omni Health

 Performance 
       Timeline  
Amkor Technology 

Risk-Adjusted Performance

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Over the last 90 days Amkor Technology has generated negative risk-adjusted returns adding no value to investors with long positions. Even with inconsistent performance in the last few months, the Stock's forward-looking signals remain relatively invariable which may send shares a bit higher in December 2024. The latest agitation may also be a sign of long-running up-swing for the enterprise retail investors.
Omni Health 

Risk-Adjusted Performance

9 of 100

 
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Strong
OK
Compared to the overall equity markets, risk-adjusted returns on investments in Omni Health are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. In spite of rather weak technical indicators, Omni Health exhibited solid returns over the last few months and may actually be approaching a breakup point.

Amkor Technology and Omni Health Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Amkor Technology and Omni Health

The main advantage of trading using opposite Amkor Technology and Omni Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amkor Technology position performs unexpectedly, Omni Health 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 Omni Health will offset losses from the drop in Omni Health's long position.
The idea behind Amkor Technology and Omni Health pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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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 Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.

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