Correlation Between Codexis and Amkor Technology
Can any of the company-specific risk be diversified away by investing in both Codexis 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 Codexis and Amkor Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Codexis and Amkor Technology, you can compare the effects of market volatilities on Codexis 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 Codexis with a short position of Amkor Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Codexis and Amkor Technology.
Diversification Opportunities for Codexis and Amkor Technology
-0.71 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Codexis and Amkor is -0.71. Overlapping area represents the amount of risk that can be diversified away by holding Codexis and Amkor Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amkor Technology and Codexis 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 Codexis 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 Codexis i.e., Codexis and Amkor Technology go up and down completely randomly.
Pair Corralation between Codexis and Amkor Technology
Given the investment horizon of 90 days Codexis is expected to generate 1.89 times more return on investment than Amkor Technology. However, Codexis is 1.89 times more volatile than Amkor Technology. It trades about 0.4 of its potential returns per unit of risk. Amkor Technology is currently generating about -0.13 per unit of risk. If you would invest 319.00 in Codexis on August 30, 2024 and sell it today you would earn a total of 140.00 from holding Codexis or generate 43.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Codexis vs. Amkor Technology
Performance |
| Timeline |
| Codexis |
| Amkor Technology |
Codexis and Amkor Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Codexis and Amkor Technology
The main advantage of trading using opposite Codexis and Amkor Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Codexis 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.| Codexis vs. Verve Therapeutics | Codexis vs. Beam Therapeutics | Codexis vs. Caribou Biosciences | Codexis vs. Sana Biotechnology |
| 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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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