Correlation Between Amkor Technology and CEWE Stiftung
Can any of the company-specific risk be diversified away by investing in both Amkor Technology and CEWE Stiftung 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 CEWE Stiftung into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Amkor Technology and CEWE Stiftung Co, you can compare the effects of market volatilities on Amkor Technology and CEWE Stiftung 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 CEWE Stiftung. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amkor Technology and CEWE Stiftung.
Diversification Opportunities for Amkor Technology and CEWE Stiftung
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Amkor and CEWE is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Amkor Technology and CEWE Stiftung Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CEWE Stiftung 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 CEWE Stiftung. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CEWE Stiftung has no effect on the direction of Amkor Technology i.e., Amkor Technology and CEWE Stiftung go up and down completely randomly.
Pair Corralation between Amkor Technology and CEWE Stiftung
Assuming the 90 days horizon Amkor Technology is expected to generate 2.26 times less return on investment than CEWE Stiftung. In addition to that, Amkor Technology is 1.88 times more volatile than CEWE Stiftung Co. It trades about 0.06 of its total potential returns per unit of risk. CEWE Stiftung Co is currently generating about 0.26 per unit of volatility. If you would invest 9,930 in CEWE Stiftung Co on October 9, 2024 and sell it today you would earn a total of 430.00 from holding CEWE Stiftung Co or generate 4.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Amkor Technology vs. CEWE Stiftung Co
Performance |
| Timeline |
| Amkor Technology |
| CEWE Stiftung |
Amkor Technology and CEWE Stiftung Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amkor Technology and CEWE Stiftung
The main advantage of trading using opposite Amkor Technology and CEWE Stiftung positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amkor Technology position performs unexpectedly, CEWE Stiftung 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 CEWE Stiftung will offset losses from the drop in CEWE Stiftung's long position.| Amkor Technology vs. HANOVER INSURANCE | Amkor Technology vs. Commercial Vehicle Group | Amkor Technology vs. Vienna Insurance Group | Amkor Technology vs. SBI Insurance Group |
| CEWE Stiftung vs. Comba Telecom Systems | CEWE Stiftung vs. COMBA TELECOM SYST | CEWE Stiftung vs. Planet Fitness | CEWE Stiftung vs. INTERSHOP Communications Aktiengesellschaft |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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