Correlation Between Amkor Technology and Transport International

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

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

Diversification Opportunities for Amkor Technology and Transport International

0.01

Correlation Coefficient

Amkor Technology  Transport International

Significant diversification

The 3 months correlation between Amkor and Transport is 0.01. Overlapping area represents the amount of risk that can be diversified away by holding Amkor Technology and Transport International Holdin in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Transport International 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 Transport International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Transport International has no effect on the direction of Amkor Technology i.e., Amkor Technology and Transport International go up and down completely randomly.

Pair Corralation between Amkor Technology and Transport International

Assuming the 90 days horizon Amkor Technology is expected to under-perform the Transport International. In addition to that, Amkor Technology is 1.23 times more volatile than Transport International Holdings. It trades about -0.09 of its total potential returns per unit of risk. Transport International Holdings is currently generating about 0.03 per unit of volatility. If you would invest  93.00  in Transport International Holdings on August 30, 2024 and sell it today you would earn a total of  3.00  from holding Transport International Holdings or generate 3.23% return on investment over 90 days.

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

Amkor Technology  vs.  Transport International Holdin

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. Despite unsteady performance in the last few months, the Stock's basic indicators remain nearly stable which may send shares a bit higher in December 2024. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

Transport International

Risk-Adjusted Performance

2 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Transport International Holdings are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Despite nearly stable basic indicators, Transport International is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with Amkor Technology and Transport International

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

The idea behind Amkor Technology and Transport International Holdings 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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..