Correlation Between Talanx AG and Amkor Technology
Can any of the company-specific risk be diversified away by investing in both Talanx AG 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 Talanx AG and Amkor Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Talanx AG and Amkor Technology, you can compare the effects of market volatilities on Talanx AG 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 Talanx AG with a short position of Amkor Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Talanx AG and Amkor Technology.
Diversification Opportunities for Talanx AG and Amkor Technology
-0.23 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Talanx and Amkor is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding Talanx AG and Amkor Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amkor Technology and Talanx AG 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 Talanx AG 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 Talanx AG i.e., Talanx AG and Amkor Technology go up and down completely randomly.
Pair Corralation between Talanx AG and Amkor Technology
Assuming the 90 days horizon Talanx AG is expected to generate 0.61 times more return on investment than Amkor Technology. However, Talanx AG is 1.64 times less risky than Amkor Technology. It trades about 0.17 of its potential returns per unit of risk. Amkor Technology is currently generating about -0.07 per unit of risk. If you would invest 7,290 in Talanx AG on October 22, 2024 and sell it today you would earn a total of 995.00 from holding Talanx AG or generate 13.65% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Talanx AG vs. Amkor Technology
Performance |
Timeline |
Talanx AG |
Amkor Technology |
Talanx AG and Amkor Technology Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Talanx AG and Amkor Technology
The main advantage of trading using opposite Talanx AG and Amkor Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Talanx AG 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.Talanx AG vs. MEDCAW INVESTMENTS LS 01 | Talanx AG vs. Apollo Investment Corp | Talanx AG vs. Stag Industrial | Talanx AG vs. MidCap Financial Investment |
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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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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