Correlation Between Amkor Technology and OZ Minerals

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

Diversification Opportunities for Amkor Technology and OZ Minerals

-0.28
  Correlation Coefficient

Very good diversification

The 3 months correlation between Amkor and OZMLF is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding Amkor Technology and OZ Minerals Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on OZ Minerals Limited 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 OZ Minerals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of OZ Minerals Limited has no effect on the direction of Amkor Technology i.e., Amkor Technology and OZ Minerals go up and down completely randomly.

Pair Corralation between Amkor Technology and OZ Minerals

If you would invest  2,600  in Amkor Technology on September 13, 2024 and sell it today you would earn a total of  69.00  from holding Amkor Technology or generate 2.65% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthInsignificant
Accuracy4.76%
ValuesDaily Returns

Amkor Technology  vs.  OZ Minerals Limited

 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 latest inconsistent performance, the Stock's forward-looking signals remain invariable and the latest agitation on Wall Street may also be a sign of long-running gains for the enterprise retail investors.
OZ Minerals Limited 

Risk-Adjusted Performance

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Weak
 
Strong
Very Weak
Over the last 90 days OZ Minerals Limited has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable essential indicators, OZ Minerals is not utilizing all of its potentials. The latest stock price disturbance, may contribute to mid-run losses for the stockholders.

Amkor Technology and OZ Minerals Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Amkor Technology and OZ Minerals

The main advantage of trading using opposite Amkor Technology and OZ Minerals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amkor Technology position performs unexpectedly, OZ Minerals 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 OZ Minerals will offset losses from the drop in OZ Minerals' long position.
The idea behind Amkor Technology and OZ Minerals Limited 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.
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 Channel module to use Commodity Channel Index to analyze current equity momentum.

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