Correlation Between Garmin and Amkor Technology
Can any of the company-specific risk be diversified away by investing in both Garmin 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 Garmin and Amkor Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Garmin and Amkor Technology, you can compare the effects of market volatilities on Garmin 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 Garmin with a short position of Amkor Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Garmin and Amkor Technology.
Diversification Opportunities for Garmin and Amkor Technology
-0.83 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Garmin and Amkor is -0.83. Overlapping area represents the amount of risk that can be diversified away by holding Garmin and Amkor Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amkor Technology and Garmin 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 Garmin 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 Garmin i.e., Garmin and Amkor Technology go up and down completely randomly.
Pair Corralation between Garmin and Amkor Technology
Given the investment horizon of 90 days Garmin is expected to generate 0.63 times more return on investment than Amkor Technology. However, Garmin is 1.59 times less risky than Amkor Technology. It trades about 0.26 of its potential returns per unit of risk. Amkor Technology is currently generating about 0.07 per unit of risk. If you would invest 20,930 in Garmin on October 23, 2024 and sell it today you would earn a total of 852.00 from holding Garmin or generate 4.07% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Garmin vs. Amkor Technology
Performance |
Timeline |
Garmin |
Amkor Technology |
Garmin and Amkor Technology Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Garmin and Amkor Technology
The main advantage of trading using opposite Garmin and Amkor Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Garmin 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.Garmin vs. Vontier Corp | Garmin vs. Teledyne Technologies Incorporated | Garmin vs. ESCO Technologies | Garmin vs. MKS Instruments |
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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
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