Correlation Between NEWELL RUBBERMAID and Amkor Technology
Can any of the company-specific risk be diversified away by investing in both NEWELL RUBBERMAID 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 NEWELL RUBBERMAID and Amkor Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NEWELL RUBBERMAID and Amkor Technology, you can compare the effects of market volatilities on NEWELL RUBBERMAID 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 NEWELL RUBBERMAID with a short position of Amkor Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of NEWELL RUBBERMAID and Amkor Technology.
Diversification Opportunities for NEWELL RUBBERMAID and Amkor Technology
-0.73 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between NEWELL and Amkor is -0.73. Overlapping area represents the amount of risk that can be diversified away by holding NEWELL RUBBERMAID and Amkor Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amkor Technology and NEWELL RUBBERMAID 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 NEWELL RUBBERMAID 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 NEWELL RUBBERMAID i.e., NEWELL RUBBERMAID and Amkor Technology go up and down completely randomly.
Pair Corralation between NEWELL RUBBERMAID and Amkor Technology
Assuming the 90 days trading horizon NEWELL RUBBERMAID is expected to generate 1.34 times less return on investment than Amkor Technology. In addition to that, NEWELL RUBBERMAID is 1.11 times more volatile than Amkor Technology. It trades about 0.01 of its total potential returns per unit of risk. Amkor Technology is currently generating about 0.02 per unit of volatility. If you would invest 2,251 in Amkor Technology on September 14, 2024 and sell it today you would earn a total of 213.00 from holding Amkor Technology or generate 9.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
NEWELL RUBBERMAID vs. Amkor Technology
Performance |
| Timeline |
| NEWELL RUBBERMAID |
| Amkor Technology |
NEWELL RUBBERMAID and Amkor Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with NEWELL RUBBERMAID and Amkor Technology
The main advantage of trading using opposite NEWELL RUBBERMAID and Amkor Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NEWELL RUBBERMAID 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.| NEWELL RUBBERMAID vs. Apple Inc | NEWELL RUBBERMAID vs. Apple Inc | NEWELL RUBBERMAID vs. Apple Inc | NEWELL RUBBERMAID vs. Apple Inc |
| Amkor Technology vs. Taiwan Semiconductor Manufacturing | Amkor Technology vs. Broadcom | Amkor Technology vs. Superior Plus Corp | Amkor Technology vs. SIVERS SEMICONDUCTORS AB |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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