Correlation Between Amkor Technology and Alpha

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

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

Diversification Opportunities for Amkor Technology and Alpha

0.91

Correlation Coefficient

Amkor Technology  Alpha

Almost no diversification

The 3 months correlation between Amkor and Alpha is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Amkor Technology and Alpha and Omega in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Alpha and Omega 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 Alpha. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Alpha and Omega has no effect on the direction of Amkor Technology i.e., Amkor Technology and Alpha go up and down completely randomly.

Pair Corralation between Amkor Technology and Alpha

Given the investment horizon of 90 days Amkor Technology is expected to generate 1.02 times more return on investment than Alpha. However, Amkor Technology is 1.02 times more volatile than Alpha and Omega. It trades about 0.12 of its potential returns per unit of risk. Alpha and Omega is currently generating about 0.12 per unit of risk. If you would invest  1,769  in Amkor Technology on May 5, 2025 and sell it today you would earn a total of  406.00  from holding Amkor Technology or generate 22.95% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Strong
Accuracy	100.0%
Values	Daily Returns

Amkor Technology  vs.  Alpha and Omega

Amkor Technology

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Amkor Technology are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. Even with relatively conflicting forward-looking signals, Amkor Technology reported solid returns over the last few months and may actually be approaching a breakup point.

Alpha and Omega

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Alpha and Omega are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. Despite quite weak basic indicators, Alpha disclosed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Amkor Technology and Alpha

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

The idea behind Amkor Technology and Alpha and Omega 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.

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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.