Correlation Between Skillz Platform and Amkor Technology

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Can any of the company-specific risk be diversified away by investing in both Skillz Platform 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 Skillz Platform and Amkor Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Skillz Platform and Amkor Technology, you can compare the effects of market volatilities on Skillz Platform 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 Skillz Platform with a short position of Amkor Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Skillz Platform and Amkor Technology.

Diversification Opportunities for Skillz Platform and Amkor Technology

SkillzAmkorDiversified AwaySkillzAmkorDiversified Away100%
-0.58
  Correlation Coefficient

Excellent diversification

The 3 months correlation between Skillz and Amkor is -0.58. Overlapping area represents the amount of risk that can be diversified away by holding Skillz Platform and Amkor Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amkor Technology and Skillz Platform 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 Skillz Platform 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 Skillz Platform i.e., Skillz Platform and Amkor Technology go up and down completely randomly.

Pair Corralation between Skillz Platform and Amkor Technology

Given the investment horizon of 90 days Skillz Platform is expected to generate 0.86 times more return on investment than Amkor Technology. However, Skillz Platform is 1.16 times less risky than Amkor Technology. It trades about -0.06 of its potential returns per unit of risk. Amkor Technology is currently generating about -0.19 per unit of risk. If you would invest  662.00  in Skillz Platform on November 25, 2024 and sell it today you would lose (29.00) from holding Skillz Platform or give up 4.38% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthVery Weak
Accuracy100.0%
ValuesDaily Returns

Skillz Platform  vs.  Amkor Technology

 Performance 
JavaScript chart by amCharts 3.21.15Dec2025Feb -100102030
JavaScript chart by amCharts 3.21.15SKLZ AMKR
       Timeline  
Skillz Platform 

Risk-Adjusted Performance

Modest

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Skillz Platform are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of fairly inconsistent essential indicators, Skillz Platform showed solid returns over the last few months and may actually be approaching a breakup point.
JavaScript chart by amCharts 3.21.15DecJanFebJanFeb4.555.566.5
Amkor Technology 

Risk-Adjusted Performance

Very Weak

 
Weak
 
Strong
Over the last 90 days Amkor Technology has generated negative risk-adjusted returns adding no value to investors with long positions. Even with inconsistent performance in the last few months, the Stock's forward-looking signals remain relatively invariable which may send shares a bit higher in March 2025. The latest agitation may also be a sign of long-running up-swing for the enterprise retail investors.
JavaScript chart by amCharts 3.21.15DecJanFebJanFeb222324252627

Skillz Platform and Amkor Technology Volatility Contrast

   Predicted Return Density   
JavaScript chart by amCharts 3.21.15-12.09-9.06-6.02-2.99-0.05063.096.299.4812.6815.87 0.010.020.030.040.050.06
JavaScript chart by amCharts 3.21.15SKLZ AMKR
       Returns  

Pair Trading with Skillz Platform and Amkor Technology

The main advantage of trading using opposite Skillz Platform and Amkor Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Skillz Platform 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.
The idea behind Skillz Platform and Amkor Technology pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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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 CEOs Directory module to screen CEOs from public companies around the world.

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