Correlation Between Amkor Technology and SCOTTS
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By analyzing existing cross correlation between Amkor Technology and SCOTTS MIRACLE GRO 45, you can compare the effects of market volatilities on Amkor Technology and SCOTTS 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 SCOTTS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amkor Technology and SCOTTS.
Diversification Opportunities for Amkor Technology and SCOTTS
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Amkor and SCOTTS is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding Amkor Technology and SCOTTS MIRACLE GRO 45 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SCOTTS MIRACLE GRO 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 SCOTTS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SCOTTS MIRACLE GRO has no effect on the direction of Amkor Technology i.e., Amkor Technology and SCOTTS go up and down completely randomly.
Pair Corralation between Amkor Technology and SCOTTS
Given the investment horizon of 90 days Amkor Technology is expected to generate 0.86 times more return on investment than SCOTTS. However, Amkor Technology is 1.17 times less risky than SCOTTS. It trades about 0.11 of its potential returns per unit of risk. SCOTTS MIRACLE GRO 45 is currently generating about -0.19 per unit of risk. If you would invest 2,545 in Amkor Technology on September 1, 2024 and sell it today you would earn a total of 99.00 from holding Amkor Technology or generate 3.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Amkor Technology vs. SCOTTS MIRACLE GRO 45
Performance |
| Timeline |
| Amkor Technology |
| SCOTTS MIRACLE GRO |
Amkor Technology and SCOTTS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amkor Technology and SCOTTS
The main advantage of trading using opposite Amkor Technology and SCOTTS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amkor Technology position performs unexpectedly, SCOTTS 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 SCOTTS will offset losses from the drop in SCOTTS's long position.| Amkor Technology vs. NXP Semiconductors NV | Amkor Technology vs. GSI Technology | Amkor Technology vs. MaxLinear | Amkor Technology vs. Texas Instruments Incorporated |
| SCOTTS vs. Amkor Technology | SCOTTS vs. ServiceNow | SCOTTS vs. Papaya Growth Opportunity | SCOTTS vs. Griffon |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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