Correlation Between CARRIER and Amkor Technology
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By analyzing existing cross correlation between CARRIER GLOBAL P and Amkor Technology, you can compare the effects of market volatilities on CARRIER 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 CARRIER with a short position of Amkor Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of CARRIER and Amkor Technology.
Diversification Opportunities for CARRIER and Amkor Technology
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between CARRIER and Amkor is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding CARRIER GLOBAL P and Amkor Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amkor Technology and CARRIER 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 CARRIER GLOBAL P 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 CARRIER i.e., CARRIER and Amkor Technology go up and down completely randomly.
Pair Corralation between CARRIER and Amkor Technology
Assuming the 90 days trading horizon CARRIER is expected to generate 1.63 times less return on investment than Amkor Technology. But when comparing it to its historical volatility, CARRIER GLOBAL P is 7.1 times less risky than Amkor Technology. It trades about 0.04 of its potential returns per unit of risk. Amkor Technology is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 2,855 in Amkor Technology on September 3, 2024 and sell it today you would lose (127.00) from holding Amkor Technology or give up 4.45% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 97.17% |
| Values | Daily Returns |
CARRIER GLOBAL P vs. Amkor Technology
Performance |
| Timeline |
| CARRIER GLOBAL P |
| Amkor Technology |
CARRIER and Amkor Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CARRIER and Amkor Technology
The main advantage of trading using opposite CARRIER and Amkor Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CARRIER 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.| CARRIER vs. IPG Photonics | CARRIER vs. Everspin Technologies | CARRIER vs. ON Semiconductor | CARRIER vs. Vishay Intertechnology |
| 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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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