Correlation Between Linkage Global and Amkor Technology
Can any of the company-specific risk be diversified away by investing in both Linkage Global 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 Linkage Global and Amkor Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Linkage Global Ordinary and Amkor Technology, you can compare the effects of market volatilities on Linkage Global 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 Linkage Global with a short position of Amkor Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Linkage Global and Amkor Technology.
Diversification Opportunities for Linkage Global and Amkor Technology
0.4 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Linkage and Amkor is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding Linkage Global Ordinary and Amkor Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amkor Technology and Linkage Global 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 Linkage Global Ordinary 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 Linkage Global i.e., Linkage Global and Amkor Technology go up and down completely randomly.
Pair Corralation between Linkage Global and Amkor Technology
Given the investment horizon of 90 days Linkage Global Ordinary is expected to under-perform the Amkor Technology. In addition to that, Linkage Global is 2.91 times more volatile than Amkor Technology. It trades about -0.25 of its total potential returns per unit of risk. Amkor Technology is currently generating about 0.12 per unit of volatility. If you would invest 2,551 in Amkor Technology on September 14, 2024 and sell it today you would earn a total of 118.00 from holding Amkor Technology or generate 4.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Linkage Global Ordinary vs. Amkor Technology
Performance |
| Timeline |
| Linkage Global Ordinary |
| Amkor Technology |
Linkage Global and Amkor Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Linkage Global and Amkor Technology
The main advantage of trading using opposite Linkage Global and Amkor Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Linkage Global 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.| Linkage Global vs. Twilio Inc | Linkage Global vs. Getty Images Holdings | Linkage Global vs. Baidu Inc | Linkage Global vs. Snap Inc |
| 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 Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
Other Complementary Tools
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio |