Correlation Between Sienna Senior and Amkor Technology
Can any of the company-specific risk be diversified away by investing in both Sienna Senior 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 Sienna Senior and Amkor Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sienna Senior Living and Amkor Technology, you can compare the effects of market volatilities on Sienna Senior 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 Sienna Senior with a short position of Amkor Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sienna Senior and Amkor Technology.
Diversification Opportunities for Sienna Senior and Amkor Technology
-0.09 | Correlation Coefficient |
Good diversification
The 3 months correlation between Sienna and Amkor is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding Sienna Senior Living and Amkor Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amkor Technology and Sienna Senior 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 Sienna Senior Living 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 Sienna Senior i.e., Sienna Senior and Amkor Technology go up and down completely randomly.
Pair Corralation between Sienna Senior and Amkor Technology
Assuming the 90 days horizon Sienna Senior Living is expected to generate 0.72 times more return on investment than Amkor Technology. However, Sienna Senior Living is 1.39 times less risky than Amkor Technology. It trades about 0.05 of its potential returns per unit of risk. Amkor Technology is currently generating about 0.01 per unit of risk. If you would invest 646.00 in Sienna Senior Living on October 14, 2024 and sell it today you would earn a total of 334.00 from holding Sienna Senior Living or generate 51.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sienna Senior Living vs. Amkor Technology
Performance |
| Timeline |
| Sienna Senior Living |
| Amkor Technology |
Sienna Senior and Amkor Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sienna Senior and Amkor Technology
The main advantage of trading using opposite Sienna Senior and Amkor Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sienna Senior 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.| Sienna Senior vs. Amkor Technology | Sienna Senior vs. Hanison Construction Holdings | Sienna Senior vs. BJs Restaurants | Sienna Senior vs. ASPEN TECHINC DL |
| Amkor Technology vs. MOBILE FACTORY INC | Amkor Technology vs. CAREER EDUCATION | Amkor Technology vs. FIH MOBILE | Amkor Technology vs. G8 EDUCATION |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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