Correlation Between Amkor Technology and United Insurance
Can any of the company-specific risk be diversified away by investing in both Amkor Technology and United Insurance 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 Amkor Technology and United Insurance into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Amkor Technology and United Insurance Holdings, you can compare the effects of market volatilities on Amkor Technology and United Insurance 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 Amkor Technology with a short position of United Insurance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amkor Technology and United Insurance.
Diversification Opportunities for Amkor Technology and United Insurance
-0.69 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Amkor and United is -0.69. Overlapping area represents the amount of risk that can be diversified away by holding Amkor Technology and United Insurance Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on United Insurance Holdings and Amkor Technology 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 Amkor Technology are associated (or correlated) with United Insurance. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of United Insurance Holdings has no effect on the direction of Amkor Technology i.e., Amkor Technology and United Insurance go up and down completely randomly.
Pair Corralation between Amkor Technology and United Insurance
Assuming the 90 days horizon Amkor Technology is expected to under-perform the United Insurance. But the stock apears to be less risky and, when comparing its historical volatility, Amkor Technology is 1.94 times less risky than United Insurance. The stock trades about -0.09 of its potential returns per unit of risk. The United Insurance Holdings is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest 1,020 in United Insurance Holdings on August 28, 2024 and sell it today you would earn a total of 270.00 from holding United Insurance Holdings or generate 26.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Amkor Technology vs. United Insurance Holdings
Performance |
| Timeline |
| Amkor Technology |
| United Insurance Holdings |
Amkor Technology and United Insurance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amkor Technology and United Insurance
The main advantage of trading using opposite Amkor Technology and United Insurance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amkor Technology position performs unexpectedly, United Insurance 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 United Insurance will offset losses from the drop in United Insurance's long position.| Amkor Technology vs. NVIDIA | Amkor Technology vs. NVIDIA | Amkor Technology vs. QUALCOMM Incorporated | Amkor Technology vs. Intel |
| United Insurance vs. Superior Plus Corp | United Insurance vs. NMI Holdings | United Insurance vs. Origin Agritech | United Insurance vs. SIVERS SEMICONDUCTORS AB |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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