Correlation Between Amkor Technology and CardieX

Can any of the company-specific risk be diversified away by investing in both Amkor Technology and CardieX 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 Amkor Technology and CardieX into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Amkor Technology and CardieX Limited, you can compare the effects of market volatilities on Amkor Technology and CardieX 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 Amkor Technology with a short position of CardieX. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amkor Technology and CardieX.

Diversification Opportunities for Amkor Technology and CardieX

0.0

Correlation Coefficient

Amkor Technology  CardieX

Pay attention - limited upside

The 3 months correlation between Amkor and CardieX is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Amkor Technology and CardieX Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CardieX Limited and Amkor Technology 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 Amkor Technology are associated (or correlated) with CardieX. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CardieX Limited has no effect on the direction of Amkor Technology i.e., Amkor Technology and CardieX go up and down completely randomly.

Pair Corralation between Amkor Technology and CardieX

If you would invest  1,799  in Amkor Technology on January 31, 2024 and sell it today you would earn a total of  1,348  from holding Amkor Technology or generate 74.93% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Amkor Technology  vs.  CardieX Limited

Amkor Technology

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Amkor Technology has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively invariable forward-looking signals, Amkor Technology is not utilizing all of its potentials. The recent stock price agitation, may contribute to short-term losses for the retail investors.

CardieX Limited

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days CardieX Limited has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable technical indicators, CardieX is not utilizing all of its potentials. The recent stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with Amkor Technology and CardieX

The main advantage of trading using opposite Amkor Technology and CardieX positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amkor Technology position performs unexpectedly, CardieX 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 CardieX will offset losses from the drop in CardieX's long position.

The idea behind Amkor Technology and CardieX Limited pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.