Correlation Between MAG SILVER and Amkor Technology
Can any of the company-specific risk be diversified away by investing in both MAG SILVER 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 MAG SILVER and Amkor Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MAG SILVER and Amkor Technology, you can compare the effects of market volatilities on MAG SILVER 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 MAG SILVER with a short position of Amkor Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of MAG SILVER and Amkor Technology.
Diversification Opportunities for MAG SILVER and Amkor Technology
0.06 | Correlation Coefficient |
Significant diversification
The 3 months correlation between MAG and Amkor is 0.06. Overlapping area represents the amount of risk that can be diversified away by holding MAG SILVER and Amkor Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amkor Technology and MAG SILVER 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 MAG SILVER 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 MAG SILVER i.e., MAG SILVER and Amkor Technology go up and down completely randomly.
Pair Corralation between MAG SILVER and Amkor Technology
Assuming the 90 days trading horizon MAG SILVER is expected to under-perform the Amkor Technology. In addition to that, MAG SILVER is 1.19 times more volatile than Amkor Technology. It trades about -0.13 of its total potential returns per unit of risk. Amkor Technology is currently generating about 0.11 per unit of volatility. If you would invest 2,479 in Amkor Technology on October 10, 2024 and sell it today you would earn a total of 82.00 from holding Amkor Technology or generate 3.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
MAG SILVER vs. Amkor Technology
Performance |
| Timeline |
| MAG SILVER |
| Amkor Technology |
MAG SILVER and Amkor Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MAG SILVER and Amkor Technology
The main advantage of trading using opposite MAG SILVER and Amkor Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MAG SILVER 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.| MAG SILVER vs. ARDAGH METAL PACDL 0001 | MAG SILVER vs. United Natural Foods | MAG SILVER vs. Nomad Foods | MAG SILVER vs. TYSON FOODS A |
| Amkor Technology vs. ALGOMA STEEL GROUP | Amkor Technology vs. PennantPark Investment | Amkor Technology vs. Japan Asia Investment | Amkor Technology vs. SLR Investment Corp |
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 Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
Other Complementary Tools
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets |