Correlation Between NXP Semiconductors and Amcor Plc

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

By analyzing existing cross correlation between NXP Semiconductors NV and Amcor plc, you can compare the effects of market volatilities on NXP Semiconductors and Amcor Plc 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 NXP Semiconductors with a short position of Amcor Plc. Check out your portfolio center. Please also check ongoing floating volatility patterns of NXP Semiconductors and Amcor Plc.

Diversification Opportunities for NXP Semiconductors and Amcor Plc

-0.3

Correlation Coefficient

NXP Semiconductors  Amcor Plc

Very good diversification

The 3 months correlation between NXP and Amcor is -0.3. Overlapping area represents the amount of risk that can be diversified away by holding NXP Semiconductors NV and Amcor plc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amcor plc and NXP Semiconductors 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 NXP Semiconductors NV are associated (or correlated) with Amcor Plc. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amcor plc has no effect on the direction of NXP Semiconductors i.e., NXP Semiconductors and Amcor Plc go up and down completely randomly.

Pair Corralation between NXP Semiconductors and Amcor Plc

Given the investment horizon of 90 days NXP Semiconductors NV is expected to generate 0.89 times more return on investment than Amcor Plc. However, NXP Semiconductors NV is 1.12 times less risky than Amcor Plc. It trades about 0.0 of its potential returns per unit of risk. Amcor plc is currently generating about -0.12 per unit of risk. If you would invest  23,127  in NXP Semiconductors NV on July 8, 2025 and sell it today you would lose (238.00) from holding NXP Semiconductors NV or give up 1.03% of portfolio value over 90 days.

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

NXP Semiconductors NV  vs.  Amcor plc

NXP Semiconductors

Risk-Adjusted Performance

Weakest

Over the last 90 days NXP Semiconductors NV has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fairly strong basic indicators, NXP Semiconductors is not utilizing all of its potentials. The recent stock price confusion, may contribute to short-horizon losses for the traders.

Amcor plc

Risk-Adjusted Performance

Weakest

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

Pair Trading with NXP Semiconductors and Amcor Plc

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

The idea behind NXP Semiconductors NV and Amcor plc 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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.