Correlation Between GSI Technology and Amkor Technology
Can any of the company-specific risk be diversified away by investing in both GSI 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 GSI 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 GSI Technology and Amkor Technology, you can compare the effects of market volatilities on GSI 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 GSI Technology with a short position of Amkor Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of GSI Technology and Amkor Technology.
Diversification Opportunities for GSI Technology and Amkor Technology
0.22 | Correlation Coefficient |
Modest diversification
The 3 months correlation between GSI and Amkor is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding GSI Technology and Amkor Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amkor Technology and GSI 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 GSI Technology 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 GSI Technology i.e., GSI Technology and Amkor Technology go up and down completely randomly.
Pair Corralation between GSI Technology and Amkor Technology
Given the investment horizon of 90 days GSI Technology is expected to generate 2.24 times more return on investment than Amkor Technology. However, GSI Technology is 2.24 times more volatile than Amkor Technology. It trades about 0.06 of its potential returns per unit of risk. Amkor Technology is currently generating about 0.11 per unit of risk. If you would invest 318.00 in GSI Technology on September 1, 2024 and sell it today you would earn a total of 12.00 from holding GSI Technology or generate 3.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
GSI Technology vs. Amkor Technology
Performance |
| Timeline |
| GSI Technology |
| Amkor Technology |
GSI Technology and Amkor Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GSI Technology and Amkor Technology
The main advantage of trading using opposite GSI Technology and Amkor Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GSI 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.| GSI Technology vs. SEALSQ Corp | GSI Technology vs. Nano Labs | GSI Technology vs. SemiLEDS | GSI Technology vs. Wisekey International Holding |
| Amkor Technology vs. NXP Semiconductors NV | Amkor Technology vs. GSI Technology | Amkor Technology vs. MaxLinear | Amkor Technology vs. Texas Instruments Incorporated |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
Other Complementary Tools
| Transaction History View history of all your transactions and understand their impact on performance | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| CEOs Directory Screen CEOs from public companies around the world |