Correlation Between United States and Amkor Technology
Can any of the company-specific risk be diversified away by investing in both United States 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 United States and Amkor Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between United States Steel and Amkor Technology, you can compare the effects of market volatilities on United States 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 United States with a short position of Amkor Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of United States and Amkor Technology.
Diversification Opportunities for United States and Amkor Technology
-0.33 | Correlation Coefficient |
Very good diversification
The 3 months correlation between United and Amkor is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding United States Steel and Amkor Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amkor Technology and United States 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 United States Steel 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 United States i.e., United States and Amkor Technology go up and down completely randomly.
Pair Corralation between United States and Amkor Technology
Taking into account the 90-day investment horizon United States Steel is expected to generate 0.86 times more return on investment than Amkor Technology. However, United States Steel is 1.17 times less risky than Amkor Technology. It trades about 0.03 of its potential returns per unit of risk. Amkor Technology is currently generating about -0.03 per unit of risk. If you would invest 3,828 in United States Steel on September 3, 2024 and sell it today you would earn a total of 249.00 from holding United States Steel or generate 6.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
United States Steel vs. Amkor Technology
Performance |
| Timeline |
| United States Steel |
| Amkor Technology |
United States and Amkor Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with United States and Amkor Technology
The main advantage of trading using opposite United States and Amkor Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if United States 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.| United States vs. Nucor Corp | United States vs. Steel Dynamics | United States vs. ArcelorMittal SA ADR | United States vs. Gerdau SA ADR |
| 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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
Other Complementary Tools
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like |