Correlation Between Amkor Technology and Sandstorm Gold

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

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

Diversification Opportunities for Amkor Technology and Sandstorm Gold

0.66

Correlation Coefficient

Amkor Technology  Sandstorm Gold

Poor diversification

The 3 months correlation between Amkor and Sandstorm is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding Amkor Technology and Sandstorm Gold Ltd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sandstorm Gold 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 Sandstorm Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sandstorm Gold has no effect on the direction of Amkor Technology i.e., Amkor Technology and Sandstorm Gold go up and down completely randomly.

Pair Corralation between Amkor Technology and Sandstorm Gold

Given the investment horizon of 90 days Amkor Technology is expected to generate 1.55 times more return on investment than Sandstorm Gold. However, Amkor Technology is 1.55 times more volatile than Sandstorm Gold Ltd. It trades about 0.13 of its potential returns per unit of risk. Sandstorm Gold Ltd is currently generating about 0.06 per unit of risk. If you would invest  1,740  in Amkor Technology on May 6, 2025 and sell it today you would earn a total of  435.00  from holding Amkor Technology or generate 25.0% return on investment over 90 days.

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

Amkor Technology  vs.  Sandstorm Gold Ltd

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 inconsistent forward-looking signals, Amkor Technology reported solid returns over the last few months and may actually be approaching a breakup point.

Sandstorm Gold

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Sandstorm Gold Ltd are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of rather abnormal basic indicators, Sandstorm Gold may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Pair Trading with Amkor Technology and Sandstorm Gold

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

The idea behind Amkor Technology and Sandstorm Gold Ltd 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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.