Correlation Between SAMS INTERNAT and Amkor Technology
Can any of the company-specific risk be diversified away by investing in both SAMS INTERNAT 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 SAMS INTERNAT and Amkor Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SAMS INTERNAT R and Amkor Technology, you can compare the effects of market volatilities on SAMS INTERNAT 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 SAMS INTERNAT with a short position of Amkor Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of SAMS INTERNAT and Amkor Technology.
Diversification Opportunities for SAMS INTERNAT and Amkor Technology
0.1 | Correlation Coefficient |
Average diversification
The 3 months correlation between SAMS and Amkor is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding SAMS INTERNAT R and Amkor Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amkor Technology and SAMS INTERNAT 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 SAMS INTERNAT R 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 SAMS INTERNAT i.e., SAMS INTERNAT and Amkor Technology go up and down completely randomly.
Pair Corralation between SAMS INTERNAT and Amkor Technology
Assuming the 90 days trading horizon SAMS INTERNAT R is expected to generate 0.93 times more return on investment than Amkor Technology. However, SAMS INTERNAT R is 1.07 times less risky than Amkor Technology. It trades about 0.37 of its potential returns per unit of risk. Amkor Technology is currently generating about 0.02 per unit of risk. If you would invest 213.00 in SAMS INTERNAT R on September 1, 2024 and sell it today you would earn a total of 39.00 from holding SAMS INTERNAT R or generate 18.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
SAMS INTERNAT R vs. Amkor Technology
Performance |
| Timeline |
| SAMS INTERNAT R |
| Amkor Technology |
SAMS INTERNAT and Amkor Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SAMS INTERNAT and Amkor Technology
The main advantage of trading using opposite SAMS INTERNAT and Amkor Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SAMS INTERNAT 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.| SAMS INTERNAT vs. VIVA WINE GROUP | SAMS INTERNAT vs. INTER CARS SA | SAMS INTERNAT vs. Lifeway Foods | SAMS INTERNAT vs. Collins Foods Limited |
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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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