Correlation Between Amkor Technology and Red Branch

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

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

Diversification Opportunities for Amkor Technology and Red Branch

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Correlation Coefficient

Amkor Technology  Red Branch

Pay attention - limited upside

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

Pair Corralation between Amkor Technology and Red Branch

Given the investment horizon of 90 days Amkor Technology is expected to generate 1.18 times more return on investment than Red Branch. However, Amkor Technology is 1.18 times more volatile than Red Branch Technologies. It trades about -0.01 of its potential returns per unit of risk. Red Branch Technologies is currently generating about -0.06 per unit of risk. If you would invest  3,293  in Amkor Technology on September 14, 2024 and sell it today you would lose (642.50) from holding Amkor Technology or give up 19.51% of portfolio value over 90 days.

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

Amkor Technology  vs.  Red Branch Technologies

Amkor Technology

Risk-Adjusted Performance

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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 latest inconsistent performance, the Stock's forward-looking signals remain invariable and the latest agitation on Wall Street may also be a sign of long-running gains for the enterprise retail investors.

Red Branch Technologies

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Red Branch Technologies has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fairly strong basic indicators, Red Branch is not utilizing all of its potentials. The latest stock price confusion, may contribute to short-horizon losses for the traders.

Pair Trading with Amkor Technology and Red Branch

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

The idea behind Amkor Technology and Red Branch Technologies 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 Center module to all portfolio management and optimization tools to improve performance of your portfolios.