Correlation Between Amkor Technology and JJill

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

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

Diversification Opportunities for Amkor Technology and JJill

0.0

Correlation Coefficient

Amkor Technology  JJill

Pay attention - limited upside

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

Pair Corralation between Amkor Technology and JJill

Given the investment horizon of 90 days Amkor Technology is expected to under-perform the JJill. But the stock apears to be less risky and, when comparing its historical volatility, Amkor Technology is 1.24 times less risky than JJill. The stock trades about -0.15 of its potential returns per unit of risk. The JJill Inc is currently generating about -0.04 of returns per unit of risk over similar time horizon. If you would invest  2,647  in JJill Inc on January 20, 2024 and sell it today you would lose (119.00) from holding JJill Inc or give up 4.5% of portfolio value over 90 days.

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

Amkor Technology  vs.  JJill Inc

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 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.

JJill Inc

Risk-Adjusted Performance

1 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in JJill Inc are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite quite persistent essential indicators, JJill is not utilizing all of its potentials. The recent stock price mess, may contribute to short-term losses for the institutional investors.

Pair Trading with Amkor Technology and JJill

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

The idea behind Amkor Technology and JJill Inc 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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.