Correlation Between Amkor Technology and BioNTech

Can any of the company-specific risk be diversified away by investing in both Amkor Technology and BioNTech 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 Amkor Technology and BioNTech into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Amkor Technology and BioNTech SE, you can compare the effects of market volatilities on Amkor Technology and BioNTech 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 BioNTech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amkor Technology and BioNTech.

Diversification Opportunities for Amkor Technology and BioNTech

0.76

Correlation Coefficient

Amkor Technology  BioNTech

Poor diversification

The 3 months correlation between Amkor and BioNTech is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Amkor Technology and BioNTech SE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BioNTech SE 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 BioNTech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BioNTech SE has no effect on the direction of Amkor Technology i.e., Amkor Technology and BioNTech go up and down completely randomly.

Pair Corralation between Amkor Technology and BioNTech

Assuming the 90 days horizon Amkor Technology is expected to under-perform the BioNTech. In addition to that, Amkor Technology is 1.15 times more volatile than BioNTech SE. It trades about -0.17 of its total potential returns per unit of risk. BioNTech SE is currently generating about -0.14 per unit of volatility. If you would invest  10,890  in BioNTech SE on December 23, 2024 and sell it today you would lose (2,050) from holding BioNTech SE or give up 18.82% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	100.0%
Values	Daily Returns

Amkor Technology  vs.  BioNTech SE

Amkor Technology

Risk-Adjusted Performance

Very Weak

Over the last 90 days Amkor Technology has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fragile performance in the last few months, the Stock's basic indicators remain nearly stable which may send shares a bit higher in April 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

BioNTech SE

Risk-Adjusted Performance

Very Weak

Over the last 90 days BioNTech SE has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fragile performance in the last few months, the Stock's basic indicators remain rather sound which may send shares a bit higher in April 2025. The latest tumult may also be a sign of longer-term up-swing for the firm shareholders.

Pair Trading with Amkor Technology and BioNTech

The main advantage of trading using opposite Amkor Technology and BioNTech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amkor Technology position performs unexpectedly, BioNTech 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 BioNTech will offset losses from the drop in BioNTech's long position.

The idea behind Amkor Technology and BioNTech SE pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.