Correlation Between Air Transport and Amkor Technology
Can any of the company-specific risk be diversified away by investing in both Air Transport 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 Air Transport and Amkor Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Air Transport Services and Amkor Technology, you can compare the effects of market volatilities on Air Transport 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 Air Transport with a short position of Amkor Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Air Transport and Amkor Technology.
Diversification Opportunities for Air Transport and Amkor Technology
-0.79 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Air and Amkor is -0.79. Overlapping area represents the amount of risk that can be diversified away by holding Air Transport Services and Amkor Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amkor Technology and Air Transport 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 Air Transport Services 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 Air Transport i.e., Air Transport and Amkor Technology go up and down completely randomly.
Pair Corralation between Air Transport and Amkor Technology
Given the investment horizon of 90 days Air Transport is expected to generate 1.94 times less return on investment than Amkor Technology. But when comparing it to its historical volatility, Air Transport Services is 13.83 times less risky than Amkor Technology. It trades about 0.53 of its potential returns per unit of risk. Amkor Technology is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 2,627 in Amkor Technology on October 23, 2024 and sell it today you would earn a total of 45.00 from holding Amkor Technology or generate 1.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Air Transport Services vs. Amkor Technology
Performance |
| Timeline |
| Air Transport Services |
| Amkor Technology |
Air Transport and Amkor Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Air Transport and Amkor Technology
The main advantage of trading using opposite Air Transport and Amkor Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Air Transport 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.| Air Transport vs. Copa Holdings SA | Air Transport vs. SkyWest | Air Transport vs. Sun Country Airlines | Air Transport vs. Frontier Group Holdings |
| 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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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