Correlation Between Amkor Technology and CECO Environmental
Can any of the company-specific risk be diversified away by investing in both Amkor Technology and CECO Environmental 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 CECO Environmental into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Amkor Technology and CECO Environmental Corp, you can compare the effects of market volatilities on Amkor Technology and CECO Environmental 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 CECO Environmental. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amkor Technology and CECO Environmental.
Diversification Opportunities for Amkor Technology and CECO Environmental
0.09 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Amkor and CECO is 0.09. Overlapping area represents the amount of risk that can be diversified away by holding Amkor Technology and CECO Environmental Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CECO Environmental Corp 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 CECO Environmental. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CECO Environmental Corp has no effect on the direction of Amkor Technology i.e., Amkor Technology and CECO Environmental go up and down completely randomly.
Pair Corralation between Amkor Technology and CECO Environmental
Given the investment horizon of 90 days Amkor Technology is expected to generate 5.73 times less return on investment than CECO Environmental. But when comparing it to its historical volatility, Amkor Technology is 1.1 times less risky than CECO Environmental. It trades about 0.01 of its potential returns per unit of risk. CECO Environmental Corp is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 1,235 in CECO Environmental Corp on September 3, 2024 and sell it today you would earn a total of 1,970 from holding CECO Environmental Corp or generate 159.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Amkor Technology vs. CECO Environmental Corp
Performance |
| Timeline |
| Amkor Technology |
| CECO Environmental Corp |
Amkor Technology and CECO Environmental Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amkor Technology and CECO Environmental
The main advantage of trading using opposite Amkor Technology and CECO Environmental positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amkor Technology position performs unexpectedly, CECO Environmental 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 CECO Environmental will offset losses from the drop in CECO Environmental's long position.| Amkor Technology vs. Power Integrations | Amkor Technology vs. Diodes Incorporated | Amkor Technology vs. MACOM Technology Solutions | Amkor Technology vs. Cirrus Logic |
| CECO Environmental vs. Federal Signal | CECO Environmental vs. Zurn Elkay Water | CECO Environmental vs. Fuel Tech | CECO Environmental vs. Energy Recovery |
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
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals |