Correlation Between Amkor Technology and Zosano Pharma

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

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

Diversification Opportunities for Amkor Technology and Zosano Pharma

0.0

Correlation Coefficient

Amkor Technology  Zosano Pharma

Pay attention - limited upside

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

Pair Corralation between Amkor Technology and Zosano Pharma

If you would invest (100.00) in Zosano Pharma Corp on February 2, 2024 and sell it today you would earn a total of  100.00  from holding Zosano Pharma Corp or generate -100.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Amkor Technology  vs.  Zosano Pharma Corp

Amkor Technology

Risk-Adjusted Performance

0 of 100

Weak

Over the last 90 days Amkor Technology has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively invariable forward-looking signals, Amkor Technology is not utilizing all of its potentials. The recent stock price agitation, may contribute to short-term losses for the retail investors.

Zosano Pharma Corp

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Zosano Pharma Corp has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy basic indicators, Zosano Pharma is not utilizing all of its potentials. The latest stock price disarray, may contribute to short-term losses for the investors.

Pair Trading with Amkor Technology and Zosano Pharma

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

The idea behind Amkor Technology and Zosano Pharma Corp 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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.