Correlation Between Amkor Technology and Codexis
Can any of the company-specific risk be diversified away by investing in both Amkor Technology and Codexis 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 Codexis into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Amkor Technology and Codexis, you can compare the effects of market volatilities on Amkor Technology and Codexis 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 Codexis. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amkor Technology and Codexis.
Diversification Opportunities for Amkor Technology and Codexis
-0.71 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Amkor and Codexis is -0.71. Overlapping area represents the amount of risk that can be diversified away by holding Amkor Technology and Codexis in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Codexis 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 Codexis. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Codexis has no effect on the direction of Amkor Technology i.e., Amkor Technology and Codexis go up and down completely randomly.
Pair Corralation between Amkor Technology and Codexis
Given the investment horizon of 90 days Amkor Technology is expected to under-perform the Codexis. But the stock apears to be less risky and, when comparing its historical volatility, Amkor Technology is 1.89 times less risky than Codexis. The stock trades about -0.13 of its potential returns per unit of risk. The Codexis is currently generating about 0.4 of returns per unit of risk over similar time horizon. If you would invest 319.00 in Codexis on August 30, 2024 and sell it today you would earn a total of 140.00 from holding Codexis or generate 43.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Amkor Technology vs. Codexis
Performance |
| Timeline |
| Amkor Technology |
| Codexis |
Amkor Technology and Codexis Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amkor Technology and Codexis
The main advantage of trading using opposite Amkor Technology and Codexis positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amkor Technology position performs unexpectedly, Codexis 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 Codexis will offset losses from the drop in Codexis' long position.| Amkor Technology vs. Power Integrations | Amkor Technology vs. Diodes Incorporated | Amkor Technology vs. MACOM Technology Solutions | Amkor Technology vs. Cirrus Logic |
| Codexis vs. Verve Therapeutics | Codexis vs. Beam Therapeutics | Codexis vs. Caribou Biosciences | Codexis vs. Sana Biotechnology |
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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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