Correlation Between Amkor Technology and PETROLEOS
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By analyzing existing cross correlation between Amkor Technology and PETROLEOS MEXICANOS 65, you can compare the effects of market volatilities on Amkor Technology and PETROLEOS 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 PETROLEOS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amkor Technology and PETROLEOS.
Diversification Opportunities for Amkor Technology and PETROLEOS
0.4 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Amkor and PETROLEOS is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding Amkor Technology and PETROLEOS MEXICANOS 65 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PETROLEOS MEXICANOS 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 PETROLEOS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PETROLEOS MEXICANOS has no effect on the direction of Amkor Technology i.e., Amkor Technology and PETROLEOS go up and down completely randomly.
Pair Corralation between Amkor Technology and PETROLEOS
Given the investment horizon of 90 days Amkor Technology is expected to generate 1.7 times more return on investment than PETROLEOS. However, Amkor Technology is 1.7 times more volatile than PETROLEOS MEXICANOS 65. It trades about 0.02 of its potential returns per unit of risk. PETROLEOS MEXICANOS 65 is currently generating about 0.01 per unit of risk. If you would invest 2,578 in Amkor Technology on September 2, 2024 and sell it today you would earn a total of 66.00 from holding Amkor Technology or generate 2.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 98.19% |
| Values | Daily Returns |
Amkor Technology vs. PETROLEOS MEXICANOS 65
Performance |
| Timeline |
| Amkor Technology |
| PETROLEOS MEXICANOS |
Amkor Technology and PETROLEOS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amkor Technology and PETROLEOS
The main advantage of trading using opposite Amkor Technology and PETROLEOS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amkor Technology position performs unexpectedly, PETROLEOS 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 PETROLEOS will offset losses from the drop in PETROLEOS's long position.| Amkor Technology vs. NXP Semiconductors NV | Amkor Technology vs. GSI Technology | Amkor Technology vs. MaxLinear | Amkor Technology vs. Texas Instruments Incorporated |
| PETROLEOS vs. AEP TEX INC | PETROLEOS vs. US BANK NATIONAL | PETROLEOS vs. Bank of America | PETROLEOS vs. GE Aerospace |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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