Correlation Between Wisekey International and Amkor Technology
Can any of the company-specific risk be diversified away by investing in both Wisekey International 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 Wisekey International and Amkor Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Wisekey International Holding and Amkor Technology, you can compare the effects of market volatilities on Wisekey International 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 Wisekey International with a short position of Amkor Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wisekey International and Amkor Technology.
Diversification Opportunities for Wisekey International and Amkor Technology
-0.19 | Correlation Coefficient |
Good diversification
The 3 months correlation between Wisekey and Amkor is -0.19. Overlapping area represents the amount of risk that can be diversified away by holding Wisekey International Holding and Amkor Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amkor Technology and Wisekey International 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 Wisekey International Holding 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 Wisekey International i.e., Wisekey International and Amkor Technology go up and down completely randomly.
Pair Corralation between Wisekey International and Amkor Technology
Given the investment horizon of 90 days Wisekey International Holding is expected to generate 3.68 times more return on investment than Amkor Technology. However, Wisekey International is 3.68 times more volatile than Amkor Technology. It trades about 0.05 of its potential returns per unit of risk. Amkor Technology is currently generating about 0.01 per unit of risk. If you would invest 521.00 in Wisekey International Holding on November 2, 2024 and sell it today you would earn a total of 269.00 from holding Wisekey International Holding or generate 51.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.8% |
| Values | Daily Returns |
Wisekey International Holding vs. Amkor Technology
Performance |
| Timeline |
| Wisekey International |
| Amkor Technology |
Wisekey International and Amkor Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Wisekey International and Amkor Technology
The main advantage of trading using opposite Wisekey International and Amkor Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Wisekey International 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.| Wisekey International vs. SemiLEDS | Wisekey International vs. GSI Technology | Wisekey International vs. SEALSQ Corp | Wisekey International vs. WiSA Technologies |
| 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios |