Correlation Between Texas Instruments and Amkor Technology

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

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

Diversification Opportunities for Texas Instruments and Amkor Technology

0.94

Correlation Coefficient

Texas Instruments  Amkor Technology

Almost no diversification

The 3 months correlation between Texas and Amkor is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Texas Instruments Incorporated and Amkor Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amkor Technology and Texas Instruments 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 Texas Instruments Incorporated 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 Texas Instruments i.e., Texas Instruments and Amkor Technology go up and down completely randomly.

Pair Corralation between Texas Instruments and Amkor Technology

Assuming the 90 days horizon Texas Instruments Incorporated is expected to generate 0.75 times more return on investment than Amkor Technology. However, Texas Instruments Incorporated is 1.34 times less risky than Amkor Technology. It trades about 0.25 of its potential returns per unit of risk. Amkor Technology is currently generating about 0.15 per unit of risk. If you would invest  13,516  in Texas Instruments Incorporated on April 23, 2025 and sell it today you would earn a total of  5,166  from holding Texas Instruments Incorporated or generate 38.22% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Strong
Accuracy	100.0%
Values	Daily Returns

Texas Instruments Incorporated  vs.  Amkor Technology

Texas Instruments

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Texas Instruments Incorporated are ranked lower than 19 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, Texas Instruments reported solid returns over the last few months and may actually be approaching a breakup point.

Amkor Technology

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Amkor Technology are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. Despite nearly uncertain basic indicators, Amkor Technology reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Texas Instruments and Amkor Technology

The main advantage of trading using opposite Texas Instruments and Amkor Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Texas Instruments 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 Texas Instruments Incorporated 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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.