Correlation Between Amkor Technology and Hapag-Lloyd
Can any of the company-specific risk be diversified away by investing in both Amkor Technology and Hapag-Lloyd 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 Hapag-Lloyd into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Amkor Technology and Hapag Lloyd AG, you can compare the effects of market volatilities on Amkor Technology and Hapag-Lloyd 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 Hapag-Lloyd. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amkor Technology and Hapag-Lloyd.
Diversification Opportunities for Amkor Technology and Hapag-Lloyd
-0.32 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Amkor and Hapag-Lloyd is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding Amkor Technology and Hapag Lloyd AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hapag Lloyd AG 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 Hapag-Lloyd. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hapag Lloyd AG has no effect on the direction of Amkor Technology i.e., Amkor Technology and Hapag-Lloyd go up and down completely randomly.
Pair Corralation between Amkor Technology and Hapag-Lloyd
Assuming the 90 days horizon Amkor Technology is expected to generate 1.68 times less return on investment than Hapag-Lloyd. But when comparing it to its historical volatility, Amkor Technology is 1.24 times less risky than Hapag-Lloyd. It trades about 0.03 of its potential returns per unit of risk. Hapag Lloyd AG is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 15,770 in Hapag Lloyd AG on September 13, 2024 and sell it today you would earn a total of 310.00 from holding Hapag Lloyd AG or generate 1.97% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Amkor Technology vs. Hapag Lloyd AG
Performance |
| Timeline |
| Amkor Technology |
| Hapag Lloyd AG |
Amkor Technology and Hapag-Lloyd Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amkor Technology and Hapag-Lloyd
The main advantage of trading using opposite Amkor Technology and Hapag-Lloyd positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amkor Technology position performs unexpectedly, Hapag-Lloyd 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 Hapag-Lloyd will offset losses from the drop in Hapag-Lloyd's long position.| Amkor Technology vs. Taiwan Semiconductor Manufacturing | Amkor Technology vs. Broadcom | Amkor Technology vs. Superior Plus Corp | Amkor Technology vs. SIVERS SEMICONDUCTORS AB |
| Hapag-Lloyd vs. Superior Plus Corp | Hapag-Lloyd vs. SIVERS SEMICONDUCTORS AB | Hapag-Lloyd vs. Norsk Hydro ASA | Hapag-Lloyd vs. Reliance Steel Aluminum |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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