Correlation Between Amkor Technology and Alstria Office
Can any of the company-specific risk be diversified away by investing in both Amkor Technology and Alstria Office 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 Alstria Office into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Amkor Technology and alstria office REIT AG, you can compare the effects of market volatilities on Amkor Technology and Alstria Office 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 Alstria Office. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amkor Technology and Alstria Office.
Diversification Opportunities for Amkor Technology and Alstria Office
-0.79 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Amkor and Alstria is -0.79. Overlapping area represents the amount of risk that can be diversified away by holding Amkor Technology and alstria office REIT AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on alstria office REIT 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 Alstria Office. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of alstria office REIT has no effect on the direction of Amkor Technology i.e., Amkor Technology and Alstria Office go up and down completely randomly.
Pair Corralation between Amkor Technology and Alstria Office
Assuming the 90 days horizon Amkor Technology is expected to generate 1.8 times less return on investment than Alstria Office. In addition to that, Amkor Technology is 1.1 times more volatile than alstria office REIT AG. It trades about 0.13 of its total potential returns per unit of risk. alstria office REIT AG is currently generating about 0.27 per unit of volatility. If you would invest 684.00 in alstria office REIT AG on September 21, 2024 and sell it today you would earn a total of 82.00 from holding alstria office REIT AG or generate 11.99% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Amkor Technology vs. alstria office REIT AG
Performance |
| Timeline |
| Amkor Technology |
| alstria office REIT |
Amkor Technology and Alstria Office Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amkor Technology and Alstria Office
The main advantage of trading using opposite Amkor Technology and Alstria Office positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amkor Technology position performs unexpectedly, Alstria Office 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 Alstria Office will offset losses from the drop in Alstria Office's long position.| Amkor Technology vs. Taiwan Semiconductor Manufacturing | Amkor Technology vs. Broadcom | Amkor Technology vs. Superior Plus Corp | Amkor Technology vs. Norsk Hydro ASA |
| Alstria Office vs. Ribbon Communications | Alstria Office vs. Live Nation Entertainment | Alstria Office vs. Cogent Communications Holdings | Alstria Office vs. Iridium Communications |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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