Correlation Between Amkor Technology and Lands End
Can any of the company-specific risk be diversified away by investing in both Amkor Technology and Lands End 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 Lands End into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Amkor Technology and Lands End, you can compare the effects of market volatilities on Amkor Technology and Lands End 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 Lands End. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amkor Technology and Lands End.
Diversification Opportunities for Amkor Technology and Lands End
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Amkor and Lands is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Amkor Technology and Lands End in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lands End 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 Lands End. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lands End has no effect on the direction of Amkor Technology i.e., Amkor Technology and Lands End go up and down completely randomly.
Pair Corralation between Amkor Technology and Lands End
Given the investment horizon of 90 days Amkor Technology is expected to under-perform the Lands End. But the stock apears to be less risky and, when comparing its historical volatility, Amkor Technology is 1.11 times less risky than Lands End. The stock trades about -0.01 of its potential returns per unit of risk. The Lands End is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 1,309 in Lands End on May 1, 2025 and sell it today you would lose (94.00) from holding Lands End or give up 7.18% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Amkor Technology vs. Lands End
Performance |
| Timeline |
| Amkor Technology |
| Lands End |
Amkor Technology and Lands End Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amkor Technology and Lands End
The main advantage of trading using opposite Amkor Technology and Lands End positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amkor Technology position performs unexpectedly, Lands End 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 Lands End will offset losses from the drop in Lands End's long position.| Amkor Technology vs. QuickLogic | Amkor Technology vs. Sequans Communications SA | Amkor Technology vs. Power Integrations | Amkor Technology vs. Silicon Laboratories |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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