Correlation Between Amkor Technology and LANXESS Aktiengesellscha
Can any of the company-specific risk be diversified away by investing in both Amkor Technology and LANXESS Aktiengesellscha 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 LANXESS Aktiengesellscha into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Amkor Technology and LANXESS Aktiengesellschaft, you can compare the effects of market volatilities on Amkor Technology and LANXESS Aktiengesellscha 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 LANXESS Aktiengesellscha. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amkor Technology and LANXESS Aktiengesellscha.
Diversification Opportunities for Amkor Technology and LANXESS Aktiengesellscha
0.6 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Amkor and LANXESS is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding Amkor Technology and LANXESS Aktiengesellschaft in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on LANXESS Aktiengesellscha 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 LANXESS Aktiengesellscha. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of LANXESS Aktiengesellscha has no effect on the direction of Amkor Technology i.e., Amkor Technology and LANXESS Aktiengesellscha go up and down completely randomly.
Pair Corralation between Amkor Technology and LANXESS Aktiengesellscha
Assuming the 90 days horizon Amkor Technology is expected to generate 0.79 times more return on investment than LANXESS Aktiengesellscha. However, Amkor Technology is 1.26 times less risky than LANXESS Aktiengesellscha. It trades about 0.07 of its potential returns per unit of risk. LANXESS Aktiengesellschaft is currently generating about -0.06 per unit of risk. If you would invest 2,378 in Amkor Technology on September 4, 2024 and sell it today you would earn a total of 72.00 from holding Amkor Technology or generate 3.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Amkor Technology vs. LANXESS Aktiengesellschaft
Performance |
| Timeline |
| Amkor Technology |
| LANXESS Aktiengesellscha |
Amkor Technology and LANXESS Aktiengesellscha Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amkor Technology and LANXESS Aktiengesellscha
The main advantage of trading using opposite Amkor Technology and LANXESS Aktiengesellscha positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amkor Technology position performs unexpectedly, LANXESS Aktiengesellscha 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 LANXESS Aktiengesellscha will offset losses from the drop in LANXESS Aktiengesellscha's long position.| Amkor Technology vs. NVIDIA | Amkor Technology vs. Taiwan Semiconductor Manufacturing | Amkor Technology vs. Advanced Micro Devices | Amkor Technology vs. Intel |
| LANXESS Aktiengesellscha vs. The Sherwin Williams | LANXESS Aktiengesellscha vs. Dupont De Nemours | LANXESS Aktiengesellscha vs. Superior Plus Corp | LANXESS Aktiengesellscha vs. NMI Holdings |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
Other Complementary Tools
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data |