Correlation Between Amkor Technology and MERCK
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By analyzing existing cross correlation between Amkor Technology and MERCK INC, you can compare the effects of market volatilities on Amkor Technology and MERCK 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 MERCK. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amkor Technology and MERCK.
Diversification Opportunities for Amkor Technology and MERCK
0.39 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Amkor and MERCK is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding Amkor Technology and MERCK INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MERCK INC 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 MERCK. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MERCK INC has no effect on the direction of Amkor Technology i.e., Amkor Technology and MERCK go up and down completely randomly.
Pair Corralation between Amkor Technology and MERCK
Given the investment horizon of 90 days Amkor Technology is expected to generate 2.07 times more return on investment than MERCK. However, Amkor Technology is 2.07 times more volatile than MERCK INC. It trades about 0.06 of its potential returns per unit of risk. MERCK INC is currently generating about -0.16 per unit of risk. If you would invest 2,602 in Amkor Technology on September 5, 2024 and sell it today you would earn a total of 52.00 from holding Amkor Technology or generate 2.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 90.91% |
| Values | Daily Returns |
Amkor Technology vs. MERCK INC
Performance |
| Timeline |
| Amkor Technology |
| MERCK INC |
Amkor Technology and MERCK Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amkor Technology and MERCK
The main advantage of trading using opposite Amkor Technology and MERCK positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amkor Technology position performs unexpectedly, MERCK 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 MERCK will offset losses from the drop in MERCK's long position.| Amkor Technology vs. NXP Semiconductors NV | Amkor Technology vs. Monolithic Power Systems | Amkor Technology vs. ON Semiconductor | Amkor Technology vs. GSI 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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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