Correlation Between Amkor Technology and Himax Technologies
Can any of the company-specific risk be diversified away by investing in both Amkor Technology and Himax Technologies 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 Himax Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Amkor Technology and Himax Technologies, you can compare the effects of market volatilities on Amkor Technology and Himax Technologies 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 Himax Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amkor Technology and Himax Technologies.
Diversification Opportunities for Amkor Technology and Himax Technologies
0.36 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Amkor and Himax is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding Amkor Technology and Himax Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Himax Technologies 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 Himax Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Himax Technologies has no effect on the direction of Amkor Technology i.e., Amkor Technology and Himax Technologies go up and down completely randomly.
Pair Corralation between Amkor Technology and Himax Technologies
Given the investment horizon of 90 days Amkor Technology is expected to generate 1.23 times more return on investment than Himax Technologies. However, Amkor Technology is 1.23 times more volatile than Himax Technologies. It trades about -0.16 of its potential returns per unit of risk. Himax Technologies is currently generating about -0.3 per unit of risk. If you would invest 2,953 in Amkor Technology on August 28, 2024 and sell it today you would lose (264.00) from holding Amkor Technology or give up 8.94% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Amkor Technology vs. Himax Technologies
Performance |
| Timeline |
| Amkor Technology |
| Himax Technologies |
Amkor Technology and Himax Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amkor Technology and Himax Technologies
The main advantage of trading using opposite Amkor Technology and Himax Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amkor Technology position performs unexpectedly, Himax Technologies 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 Himax Technologies will offset losses from the drop in Himax Technologies' long position.| Amkor Technology vs. Power Integrations | Amkor Technology vs. Diodes Incorporated | Amkor Technology vs. MACOM Technology Solutions | Amkor Technology vs. Cirrus Logic |
| Himax Technologies vs. ASE Industrial Holding | Himax Technologies vs. United Microelectronics | Himax Technologies vs. MaxLinear | Himax Technologies vs. SemiLEDS |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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