Correlation Between Amkor Technology and Braskem SA
Can any of the company-specific risk be diversified away by investing in both Amkor Technology and Braskem SA 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 Braskem SA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Amkor Technology and Braskem SA Class, you can compare the effects of market volatilities on Amkor Technology and Braskem SA 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 Braskem SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amkor Technology and Braskem SA.
Diversification Opportunities for Amkor Technology and Braskem SA
-0.05 | Correlation Coefficient |
Good diversification
The 3 months correlation between Amkor and Braskem is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding Amkor Technology and Braskem SA Class in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Braskem SA Class 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 Braskem SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Braskem SA Class has no effect on the direction of Amkor Technology i.e., Amkor Technology and Braskem SA go up and down completely randomly.
Pair Corralation between Amkor Technology and Braskem SA
Given the investment horizon of 90 days Amkor Technology is expected to generate 1.14 times more return on investment than Braskem SA. However, Amkor Technology is 1.14 times more volatile than Braskem SA Class. It trades about -0.09 of its potential returns per unit of risk. Braskem SA Class is currently generating about -0.27 per unit of risk. If you would invest 2,372 in Amkor Technology on November 27, 2024 and sell it today you would lose (148.00) from holding Amkor Technology or give up 6.24% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.24% |
| Values | Daily Returns |
Amkor Technology vs. Braskem SA Class
Performance |
| Timeline |
| Amkor Technology |
| Braskem SA Class |
Amkor Technology and Braskem SA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amkor Technology and Braskem SA
The main advantage of trading using opposite Amkor Technology and Braskem SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amkor Technology position performs unexpectedly, Braskem SA 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 Braskem SA will offset losses from the drop in Braskem SA's long position.| Amkor Technology vs. Power Integrations | Amkor Technology vs. Diodes Incorporated | Amkor Technology vs. MACOM Technology Solutions | Amkor Technology vs. Cirrus Logic |
| Braskem SA vs. Valhi Inc | Braskem SA vs. Huntsman | Braskem SA vs. Lsb Industries | Braskem SA vs. Westlake Chemical Partners |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
Other Complementary Tools
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges |