Correlation Between Amkor Technology and Almacenes Xito
Can any of the company-specific risk be diversified away by investing in both Amkor Technology and Almacenes Xito 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 Almacenes Xito into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Amkor Technology and Almacenes xito SA, you can compare the effects of market volatilities on Amkor Technology and Almacenes Xito 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 Almacenes Xito. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amkor Technology and Almacenes Xito.
Diversification Opportunities for Amkor Technology and Almacenes Xito
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Amkor and Almacenes is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Amkor Technology and Almacenes xito SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Almacenes xito SA 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 Almacenes Xito. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Almacenes xito SA has no effect on the direction of Amkor Technology i.e., Amkor Technology and Almacenes Xito go up and down completely randomly.
Pair Corralation between Amkor Technology and Almacenes Xito
Given the investment horizon of 90 days Amkor Technology is expected to generate 0.97 times more return on investment than Almacenes Xito. However, Amkor Technology is 1.03 times less risky than Almacenes Xito. It trades about 0.02 of its potential returns per unit of risk. Almacenes xito SA is currently generating about -0.03 per unit of risk. If you would invest 2,597 in Amkor Technology on September 4, 2024 and sell it today you would earn a total of 131.00 from holding Amkor Technology or generate 5.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 65.25% |
| Values | Daily Returns |
Amkor Technology vs. Almacenes xito SA
Performance |
| Timeline |
| Amkor Technology |
| Almacenes xito SA |
Amkor Technology and Almacenes Xito Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amkor Technology and Almacenes Xito
The main advantage of trading using opposite Amkor Technology and Almacenes Xito positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amkor Technology position performs unexpectedly, Almacenes Xito 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 Almacenes Xito will offset losses from the drop in Almacenes Xito's long position.| Amkor Technology vs. NXP Semiconductors NV | Amkor Technology vs. Analog Devices | Amkor Technology vs. Monolithic Power Systems | Amkor Technology vs. ON Semiconductor |
| Almacenes Xito vs. Xponential Fitness | Almacenes Xito vs. Kite Realty Group | Almacenes Xito vs. Aldel Financial II | Almacenes Xito vs. Small Cap Premium |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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