Correlation Between Amkor Technology and Luxfer Holdings
Can any of the company-specific risk be diversified away by investing in both Amkor Technology and Luxfer Holdings 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 Luxfer Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Amkor Technology and Luxfer Holdings PLC, you can compare the effects of market volatilities on Amkor Technology and Luxfer Holdings 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 Luxfer Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amkor Technology and Luxfer Holdings.
Diversification Opportunities for Amkor Technology and Luxfer Holdings
-0.43 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Amkor and Luxfer is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding Amkor Technology and Luxfer Holdings PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Luxfer Holdings PLC 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 Luxfer Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Luxfer Holdings PLC has no effect on the direction of Amkor Technology i.e., Amkor Technology and Luxfer Holdings go up and down completely randomly.
Pair Corralation between Amkor Technology and Luxfer Holdings
Given the investment horizon of 90 days Amkor Technology is expected to under-perform the Luxfer Holdings. In addition to that, Amkor Technology is 1.65 times more volatile than Luxfer Holdings PLC. It trades about -0.09 of its total potential returns per unit of risk. Luxfer Holdings PLC is currently generating about 0.0 per unit of volatility. If you would invest 1,401 in Luxfer Holdings PLC on November 27, 2024 and sell it today you would lose (6.00) from holding Luxfer Holdings PLC or give up 0.43% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Amkor Technology vs. Luxfer Holdings PLC
Performance |
| Timeline |
| Amkor Technology |
| Luxfer Holdings PLC |
Amkor Technology and Luxfer Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amkor Technology and Luxfer Holdings
The main advantage of trading using opposite Amkor Technology and Luxfer Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amkor Technology position performs unexpectedly, Luxfer Holdings 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 Luxfer Holdings will offset losses from the drop in Luxfer Holdings' long position.| Amkor Technology vs. Power Integrations | Amkor Technology vs. Diodes Incorporated | Amkor Technology vs. MACOM Technology Solutions | Amkor Technology vs. Cirrus Logic |
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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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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