Correlation Between Yoshitsu and Amkor Technology

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

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

Diversification Opportunities for Yoshitsu and Amkor Technology

0.33

Correlation Coefficient

Yoshitsu  Amkor Technology

Weak diversification

The 3 months correlation between Yoshitsu and Amkor is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding Yoshitsu Co Ltd and Amkor Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amkor Technology and Yoshitsu 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 Yoshitsu Co Ltd 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 Yoshitsu i.e., Yoshitsu and Amkor Technology go up and down completely randomly.

Pair Corralation between Yoshitsu and Amkor Technology

Given the investment horizon of 90 days Yoshitsu is expected to generate 4.02 times less return on investment than Amkor Technology. But when comparing it to its historical volatility, Yoshitsu Co Ltd is 1.48 times less risky than Amkor Technology. It trades about 0.04 of its potential returns per unit of risk. Amkor Technology is currently generating about 0.12 of returns per unit of risk over similar time horizon. 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 Weak
Accuracy	100.0%
Values	Daily Returns

Yoshitsu Co Ltd  vs.  Amkor Technology

Yoshitsu

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Yoshitsu Co Ltd are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Despite nearly stable essential indicators, Yoshitsu is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

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.

Pair Trading with Yoshitsu and Amkor Technology

The main advantage of trading using opposite Yoshitsu and Amkor Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Yoshitsu 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.

The idea behind Yoshitsu Co Ltd and Amkor Technology 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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.