Correlation Between AEON METALS and Amkor Technology
Can any of the company-specific risk be diversified away by investing in both AEON METALS 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 AEON METALS and Amkor Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AEON METALS LTD and Amkor Technology, you can compare the effects of market volatilities on AEON METALS 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 AEON METALS with a short position of Amkor Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of AEON METALS and Amkor Technology.
Diversification Opportunities for AEON METALS and Amkor Technology
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between AEON and Amkor is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding AEON METALS LTD and Amkor Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amkor Technology and AEON METALS 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 AEON METALS LTD 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 AEON METALS i.e., AEON METALS and Amkor Technology go up and down completely randomly.
Pair Corralation between AEON METALS and Amkor Technology
Assuming the 90 days trading horizon AEON METALS LTD is expected to generate 43.49 times more return on investment than Amkor Technology. However, AEON METALS is 43.49 times more volatile than Amkor Technology. It trades about 0.15 of its potential returns per unit of risk. Amkor Technology is currently generating about 0.01 per unit of risk. If you would invest 0.55 in AEON METALS LTD on October 30, 2024 and sell it today you would lose (0.50) from holding AEON METALS LTD or give up 90.91% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
AEON METALS LTD vs. Amkor Technology
Performance |
| Timeline |
| AEON METALS LTD |
| Amkor Technology |
AEON METALS and Amkor Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AEON METALS and Amkor Technology
The main advantage of trading using opposite AEON METALS and Amkor Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AEON METALS 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.| AEON METALS vs. SLR Investment Corp | AEON METALS vs. Scottish Mortgage Investment | AEON METALS vs. HK Electric Investments | AEON METALS vs. REINET INVESTMENTS SCA |
| Amkor Technology vs. Chesapeake Utilities | Amkor Technology vs. NORTHEAST UTILITIES | Amkor Technology vs. Marie Brizard Wine | Amkor Technology vs. SEI INVESTMENTS |
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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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