Correlation Between Joint Corp and Amkor Technology

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

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

Diversification Opportunities for Joint Corp and Amkor Technology

-0.08

Correlation Coefficient

Joint Corp  Amkor Technology

Good diversification

The 3 months correlation between Joint and Amkor is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding The Joint Corp and Amkor Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amkor Technology and Joint Corp 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 The Joint Corp 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 Joint Corp i.e., Joint Corp and Amkor Technology go up and down completely randomly.

Pair Corralation between Joint Corp and Amkor Technology

Given the investment horizon of 90 days The Joint Corp is expected to generate 1.05 times more return on investment than Amkor Technology. However, Joint Corp is 1.05 times more volatile than Amkor Technology. It trades about -0.08 of its potential returns per unit of risk. Amkor Technology is currently generating about -0.11 per unit of risk. If you would invest  1,155  in The Joint Corp on September 26, 2024 and sell it today you would lose (147.00) from holding The Joint Corp or give up 12.73% of portfolio value over 90 days.

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

The Joint Corp  vs.  Amkor Technology

Joint Corp

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days The Joint Corp has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest inconsistent performance, the Stock's basic indicators remain stable and the newest uproar on Wall Street may also be a sign of mid-term gains for the firm private investors.

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. Even with weak performance in the last few months, the Stock's forward-looking signals remain relatively invariable which may send shares a bit higher in January 2025. The latest agitation may also be a sign of long-running up-swing for the enterprise retail investors.

Pair Trading with Joint Corp and Amkor Technology

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

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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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.