Correlation Between Amkor Technology and Solstad Offshore
Can any of the company-specific risk be diversified away by investing in both Amkor Technology and Solstad Offshore 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 Solstad Offshore into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Amkor Technology and Solstad Offshore ASA, you can compare the effects of market volatilities on Amkor Technology and Solstad Offshore 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 Solstad Offshore. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amkor Technology and Solstad Offshore.
Diversification Opportunities for Amkor Technology and Solstad Offshore
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Amkor and Solstad is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Amkor Technology and Solstad Offshore ASA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Solstad Offshore ASA 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 Solstad Offshore. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Solstad Offshore ASA has no effect on the direction of Amkor Technology i.e., Amkor Technology and Solstad Offshore go up and down completely randomly.
Pair Corralation between Amkor Technology and Solstad Offshore
If you would invest 2,602 in Amkor Technology on September 4, 2024 and sell it today you would earn a total of 96.00 from holding Amkor Technology or generate 3.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Amkor Technology vs. Solstad Offshore ASA
Performance |
| Timeline |
| Amkor Technology |
| Solstad Offshore ASA |
Amkor Technology and Solstad Offshore Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amkor Technology and Solstad Offshore
The main advantage of trading using opposite Amkor Technology and Solstad Offshore positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amkor Technology position performs unexpectedly, Solstad Offshore 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 Solstad Offshore will offset losses from the drop in Solstad Offshore'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 |
| Solstad Offshore vs. Hapag Lloyd Aktiengesellschaft | Solstad Offshore vs. COSCO SHIPPING Holdings | Solstad Offshore vs. Orient Overseas Limited |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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