Correlation Between Semtech and Amkor Technology
Can any of the company-specific risk be diversified away by investing in both Semtech 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 Semtech and Amkor Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Semtech and Amkor Technology, you can compare the effects of market volatilities on Semtech 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 Semtech with a short position of Amkor Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Semtech and Amkor Technology.
Diversification Opportunities for Semtech and Amkor Technology
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Semtech and Amkor is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding Semtech and Amkor Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amkor Technology and Semtech 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 Semtech 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 Semtech i.e., Semtech and Amkor Technology go up and down completely randomly.
Pair Corralation between Semtech and Amkor Technology
Given the investment horizon of 90 days Semtech is expected to under-perform the Amkor Technology. In addition to that, Semtech is 2.75 times more volatile than Amkor Technology. It trades about -0.3 of its total potential returns per unit of risk. Amkor Technology is currently generating about -0.18 per unit of volatility. If you would invest 2,591 in Amkor Technology on November 18, 2024 and sell it today you would lose (340.00) from holding Amkor Technology or give up 13.12% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Semtech vs. Amkor Technology
Performance |
| Timeline |
| Semtech |
| Amkor Technology |
Semtech and Amkor Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Semtech and Amkor Technology
The main advantage of trading using opposite Semtech and Amkor Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Semtech 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.| Semtech vs. Power Integrations | Semtech vs. Diodes Incorporated | Semtech vs. MACOM Technology Solutions | Semtech vs. Cirrus Logic |
| 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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
Other Complementary Tools
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios |