Correlation Between Virtus Investment and Amkor Technology

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

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

Diversification Opportunities for Virtus Investment and Amkor Technology

0.89

Correlation Coefficient

Virtus Investment  Amkor Technology

Very poor diversification

The 3 months correlation between Virtus and Amkor is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Virtus Investment Partners and Amkor Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amkor Technology and Virtus Investment 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 Virtus Investment Partners 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 Virtus Investment i.e., Virtus Investment and Amkor Technology go up and down completely randomly.

Pair Corralation between Virtus Investment and Amkor Technology

Assuming the 90 days horizon Virtus Investment Partners is expected to generate 0.63 times more return on investment than Amkor Technology. However, Virtus Investment Partners is 1.58 times less risky than Amkor Technology. It trades about 0.26 of its potential returns per unit of risk. Amkor Technology is currently generating about 0.15 per unit of risk. If you would invest  13,202  in Virtus Investment Partners on April 24, 2025 and sell it today you would earn a total of  4,398  from holding Virtus Investment Partners or generate 33.31% return on investment over 90 days.

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

Virtus Investment Partners  vs.  Amkor Technology

Virtus Investment

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Virtus Investment Partners are ranked lower than 20 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, Virtus Investment 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 fragile basic indicators, Amkor Technology reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Virtus Investment and Amkor Technology

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

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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.