Correlation Between JOHNSON and Amkor Technology
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By analyzing existing cross correlation between JOHNSON JOHNSON 695 and Amkor Technology, you can compare the effects of market volatilities on JOHNSON 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 JOHNSON with a short position of Amkor Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of JOHNSON and Amkor Technology.
Diversification Opportunities for JOHNSON and Amkor Technology
-0.2 | Correlation Coefficient |
Good diversification
The 3 months correlation between JOHNSON and Amkor is -0.2. Overlapping area represents the amount of risk that can be diversified away by holding JOHNSON JOHNSON 695 and Amkor Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amkor Technology and JOHNSON 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 JOHNSON JOHNSON 695 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 JOHNSON i.e., JOHNSON and Amkor Technology go up and down completely randomly.
Pair Corralation between JOHNSON and Amkor Technology
Assuming the 90 days trading horizon JOHNSON is expected to generate 1.15 times less return on investment than Amkor Technology. But when comparing it to its historical volatility, JOHNSON JOHNSON 695 is 3.85 times less risky than Amkor Technology. It trades about 0.18 of its potential returns per unit of risk. Amkor Technology is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 2,600 in Amkor Technology on September 2, 2024 and sell it today you would earn a total of 44.00 from holding Amkor Technology or generate 1.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 90.48% |
| Values | Daily Returns |
JOHNSON JOHNSON 695 vs. Amkor Technology
Performance |
| Timeline |
| JOHNSON JOHNSON 695 |
| Amkor Technology |
JOHNSON and Amkor Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JOHNSON and Amkor Technology
The main advantage of trading using opposite JOHNSON and Amkor Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JOHNSON 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.| JOHNSON vs. Amkor Technology | JOHNSON vs. CECO Environmental Corp | JOHNSON vs. Uber Technologies | JOHNSON vs. ServiceNow |
| Amkor Technology vs. NXP Semiconductors NV | Amkor Technology vs. GSI Technology | Amkor Technology vs. MaxLinear | Amkor Technology vs. Texas Instruments Incorporated |
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 Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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