Correlation Between Alpha Technology and Amkor Technology
Can any of the company-specific risk be diversified away by investing in both Alpha Technology and Amkor Technology 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 Alpha Technology and Amkor Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Alpha Technology Group and Amkor Technology, you can compare the effects of market volatilities on Alpha Technology and Amkor Technology 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 Alpha Technology with a short position of Amkor Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Alpha Technology and Amkor Technology.
Diversification Opportunities for Alpha Technology and Amkor Technology
-0.74 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Alpha and Amkor is -0.74. Overlapping area represents the amount of risk that can be diversified away by holding Alpha Technology Group and Amkor Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amkor Technology and Alpha 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 Alpha Technology Group are associated (or correlated) with Amkor Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amkor Technology has no effect on the direction of Alpha Technology i.e., Alpha Technology and Amkor Technology go up and down completely randomly.
Pair Corralation between Alpha Technology and Amkor Technology
Given the investment horizon of 90 days Alpha Technology Group is expected to generate 6.09 times more return on investment than Amkor Technology. However, Alpha Technology is 6.09 times more volatile than Amkor Technology. It trades about 0.25 of its potential returns per unit of risk. Amkor Technology is currently generating about -0.17 per unit of risk. If you would invest 633.00 in Alpha Technology Group on August 24, 2024 and sell it today you would earn a total of 583.00 from holding Alpha Technology Group or generate 92.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Alpha Technology Group vs. Amkor Technology
Performance |
| Timeline |
| Alpha Technology |
| Amkor Technology |
Alpha Technology and Amkor Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Alpha Technology and Amkor Technology
The main advantage of trading using opposite Alpha Technology and Amkor Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Alpha Technology position performs unexpectedly, Amkor Technology 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 Amkor Technology will offset losses from the drop in Amkor Technology's long position.| Alpha Technology vs. Amkor Technology | Alpha Technology vs. Nextplat Corp | Alpha Technology vs. BioNTech SE | Alpha Technology vs. Allient |
| Amkor Technology vs. Power Integrations | Amkor Technology vs. Diodes Incorporated | Amkor Technology vs. MACOM Technology Solutions | Amkor Technology vs. Cirrus Logic |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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