Correlation Between SHIP HEALTHCARE and Amkor Technology
Can any of the company-specific risk be diversified away by investing in both SHIP HEALTHCARE 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 SHIP HEALTHCARE and Amkor Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SHIP HEALTHCARE HLDGINC and Amkor Technology, you can compare the effects of market volatilities on SHIP HEALTHCARE 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 SHIP HEALTHCARE with a short position of Amkor Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of SHIP HEALTHCARE and Amkor Technology.
Diversification Opportunities for SHIP HEALTHCARE and Amkor Technology
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between SHIP and Amkor is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding SHIP HEALTHCARE HLDGINC and Amkor Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amkor Technology and SHIP HEALTHCARE 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 SHIP HEALTHCARE HLDGINC 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 SHIP HEALTHCARE i.e., SHIP HEALTHCARE and Amkor Technology go up and down completely randomly.
Pair Corralation between SHIP HEALTHCARE and Amkor Technology
Assuming the 90 days horizon SHIP HEALTHCARE HLDGINC is expected to generate 1.2 times more return on investment than Amkor Technology. However, SHIP HEALTHCARE is 1.2 times more volatile than Amkor Technology. It trades about 0.07 of its potential returns per unit of risk. Amkor Technology is currently generating about 0.01 per unit of risk. If you would invest 824.00 in SHIP HEALTHCARE HLDGINC on September 4, 2024 and sell it today you would earn a total of 546.00 from holding SHIP HEALTHCARE HLDGINC or generate 66.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
SHIP HEALTHCARE HLDGINC vs. Amkor Technology
Performance |
| Timeline |
| SHIP HEALTHCARE HLDGINC |
| Amkor Technology |
SHIP HEALTHCARE and Amkor Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SHIP HEALTHCARE and Amkor Technology
The main advantage of trading using opposite SHIP HEALTHCARE and Amkor Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SHIP HEALTHCARE 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.| SHIP HEALTHCARE vs. THRACE PLASTICS | SHIP HEALTHCARE vs. Rayonier Advanced Materials | SHIP HEALTHCARE vs. SANOK RUBBER ZY | SHIP HEALTHCARE vs. Gruppo Mutuionline SpA |
| Amkor Technology vs. NVIDIA | Amkor Technology vs. Taiwan Semiconductor Manufacturing | Amkor Technology vs. Advanced Micro Devices | Amkor Technology vs. Intel |
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 Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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