Correlation Between Amkor Technology and BioNTech
Can any of the company-specific risk be diversified away by investing in both Amkor Technology and BioNTech 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 BioNTech into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Amkor Technology and BioNTech SE, you can compare the effects of market volatilities on Amkor Technology and BioNTech 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 BioNTech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amkor Technology and BioNTech.
Diversification Opportunities for Amkor Technology and BioNTech
-0.1 | Correlation Coefficient |
Good diversification
The 3 months correlation between Amkor and BioNTech is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding Amkor Technology and BioNTech SE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BioNTech SE 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 BioNTech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BioNTech SE has no effect on the direction of Amkor Technology i.e., Amkor Technology and BioNTech go up and down completely randomly.
Pair Corralation between Amkor Technology and BioNTech
Given the investment horizon of 90 days Amkor Technology is expected to under-perform the BioNTech. But the stock apears to be less risky and, when comparing its historical volatility, Amkor Technology is 1.02 times less risky than BioNTech. The stock trades about -0.11 of its potential returns per unit of risk. The BioNTech SE is currently generating about -0.03 of returns per unit of risk over similar time horizon. If you would invest 11,847 in BioNTech SE on August 25, 2024 and sell it today you would lose (534.00) from holding BioNTech SE or give up 4.51% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Amkor Technology vs. BioNTech SE
Performance |
| Timeline |
| Amkor Technology |
| BioNTech SE |
Amkor Technology and BioNTech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amkor Technology and BioNTech
The main advantage of trading using opposite Amkor Technology and BioNTech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amkor Technology position performs unexpectedly, BioNTech 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 BioNTech will offset losses from the drop in BioNTech's long position.| Amkor Technology vs. Teradyne | Amkor Technology vs. IPG Photonics | Amkor Technology vs. Applied Materials |
| BioNTech vs. Novavax | BioNTech vs. Ginkgo Bioworks Holdings | BioNTech vs. Crispr Therapeutics AG | BioNTech vs. Ocean Biomedical |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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