Correlation Between Amkor Technology and DEUTSCHE WOHNEN
Can any of the company-specific risk be diversified away by investing in both Amkor Technology and DEUTSCHE WOHNEN 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 DEUTSCHE WOHNEN into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Amkor Technology and DEUTSCHE WOHNEN ADRS12, you can compare the effects of market volatilities on Amkor Technology and DEUTSCHE WOHNEN 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 DEUTSCHE WOHNEN. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amkor Technology and DEUTSCHE WOHNEN.
Diversification Opportunities for Amkor Technology and DEUTSCHE WOHNEN
0.2 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Amkor and DEUTSCHE is 0.2. Overlapping area represents the amount of risk that can be diversified away by holding Amkor Technology and DEUTSCHE WOHNEN ADRS12 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DEUTSCHE WOHNEN ADRS12 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 DEUTSCHE WOHNEN. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DEUTSCHE WOHNEN ADRS12 has no effect on the direction of Amkor Technology i.e., Amkor Technology and DEUTSCHE WOHNEN go up and down completely randomly.
Pair Corralation between Amkor Technology and DEUTSCHE WOHNEN
Assuming the 90 days horizon Amkor Technology is expected to under-perform the DEUTSCHE WOHNEN. But the stock apears to be less risky and, when comparing its historical volatility, Amkor Technology is 1.15 times less risky than DEUTSCHE WOHNEN. The stock trades about -0.02 of its potential returns per unit of risk. The DEUTSCHE WOHNEN ADRS12 is currently generating about -0.01 of returns per unit of risk over similar time horizon. If you would invest 1,130 in DEUTSCHE WOHNEN ADRS12 on October 30, 2024 and sell it today you would lose (30.00) from holding DEUTSCHE WOHNEN ADRS12 or give up 2.65% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 98.33% |
| Values | Daily Returns |
Amkor Technology vs. DEUTSCHE WOHNEN ADRS12
Performance |
| Timeline |
| Amkor Technology |
| DEUTSCHE WOHNEN ADRS12 |
Amkor Technology and DEUTSCHE WOHNEN Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amkor Technology and DEUTSCHE WOHNEN
The main advantage of trading using opposite Amkor Technology and DEUTSCHE WOHNEN positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amkor Technology position performs unexpectedly, DEUTSCHE WOHNEN 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 DEUTSCHE WOHNEN will offset losses from the drop in DEUTSCHE WOHNEN's long position.| Amkor Technology vs. Chesapeake Utilities | Amkor Technology vs. NORTHEAST UTILITIES | Amkor Technology vs. Marie Brizard Wine | Amkor Technology vs. SEI INVESTMENTS |
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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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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