Correlation Between Axalta Coating and Amkor Technology
Can any of the company-specific risk be diversified away by investing in both Axalta Coating and Amkor Technology 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 Axalta Coating and Amkor Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Axalta Coating Systems and Amkor Technology, you can compare the effects of market volatilities on Axalta Coating and Amkor Technology 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 Axalta Coating with a short position of Amkor Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Axalta Coating and Amkor Technology.
Diversification Opportunities for Axalta Coating and Amkor Technology
-0.78 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Axalta and Amkor is -0.78. Overlapping area represents the amount of risk that can be diversified away by holding Axalta Coating Systems and Amkor Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amkor Technology and Axalta Coating 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 Axalta Coating Systems are associated (or correlated) with Amkor Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amkor Technology has no effect on the direction of Axalta Coating i.e., Axalta Coating and Amkor Technology go up and down completely randomly.
Pair Corralation between Axalta Coating and Amkor Technology
Given the investment horizon of 90 days Axalta Coating Systems is expected to generate 0.47 times more return on investment than Amkor Technology. However, Axalta Coating Systems is 2.14 times less risky than Amkor Technology. It trades about 0.07 of its potential returns per unit of risk. Amkor Technology is currently generating about -0.06 per unit of risk. If you would invest 3,478 in Axalta Coating Systems on September 13, 2024 and sell it today you would earn a total of 429.00 from holding Axalta Coating Systems or generate 12.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Axalta Coating Systems vs. Amkor Technology
Performance |
| Timeline |
| Axalta Coating Systems |
| Amkor Technology |
Axalta Coating and Amkor Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Axalta Coating and Amkor Technology
The main advantage of trading using opposite Axalta Coating and Amkor Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Axalta Coating position performs unexpectedly, Amkor Technology 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 Amkor Technology will offset losses from the drop in Amkor Technology's long position.| Axalta Coating vs. Avient Corp | Axalta Coating vs. H B Fuller | Axalta Coating vs. Quaker Chemical | Axalta Coating vs. Cabot |
| Amkor Technology vs. Power Integrations | Amkor Technology vs. Diodes Incorporated | Amkor Technology vs. MACOM Technology Solutions | Amkor Technology vs. Cirrus Logic |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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