Correlation Between Amkor Technology and Maanshan Iron
Can any of the company-specific risk be diversified away by investing in both Amkor Technology and Maanshan Iron 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 Maanshan Iron into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Amkor Technology and Maanshan Iron Steel, you can compare the effects of market volatilities on Amkor Technology and Maanshan Iron 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 Maanshan Iron. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amkor Technology and Maanshan Iron.
Diversification Opportunities for Amkor Technology and Maanshan Iron
-0.61 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Amkor and Maanshan is -0.61. Overlapping area represents the amount of risk that can be diversified away by holding Amkor Technology and Maanshan Iron Steel in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Maanshan Iron Steel 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 Maanshan Iron. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Maanshan Iron Steel has no effect on the direction of Amkor Technology i.e., Amkor Technology and Maanshan Iron go up and down completely randomly.
Pair Corralation between Amkor Technology and Maanshan Iron
Given the investment horizon of 90 days Amkor Technology is expected to generate 0.68 times more return on investment than Maanshan Iron. However, Amkor Technology is 1.47 times less risky than Maanshan Iron. It trades about 0.02 of its potential returns per unit of risk. Maanshan Iron Steel is currently generating about -0.01 per unit of risk. If you would invest 2,555 in Amkor Technology on September 1, 2024 and sell it today you would earn a total of 89.00 from holding Amkor Technology or generate 3.48% 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. Maanshan Iron Steel
Performance |
| Timeline |
| Amkor Technology |
| Maanshan Iron Steel |
Amkor Technology and Maanshan Iron Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amkor Technology and Maanshan Iron
The main advantage of trading using opposite Amkor Technology and Maanshan Iron positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amkor Technology position performs unexpectedly, Maanshan Iron 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 Maanshan Iron will offset losses from the drop in Maanshan Iron's long position.| Amkor Technology vs. NXP Semiconductors NV | Amkor Technology vs. Microchip Technology | Amkor Technology vs. Monolithic Power Systems | Amkor Technology vs. ON Semiconductor |
| Maanshan Iron vs. Olympic Steel | Maanshan Iron vs. POSCO Holdings | Maanshan Iron vs. Steel Dynamics | Maanshan Iron vs. Universal Stainless Alloy |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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