Correlation Between Amkor Technology and SBI Insurance
Can any of the company-specific risk be diversified away by investing in both Amkor Technology and SBI 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 SBI 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 SBI Insurance Group, you can compare the effects of market volatilities on Amkor Technology and SBI 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 SBI Insurance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amkor Technology and SBI Insurance.
Diversification Opportunities for Amkor Technology and SBI Insurance
0.16 | Correlation Coefficient |
Average diversification
The 3 months correlation between Amkor and SBI is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding Amkor Technology and SBI Insurance Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SBI Insurance Group 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 SBI Insurance. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SBI Insurance Group has no effect on the direction of Amkor Technology i.e., Amkor Technology and SBI Insurance go up and down completely randomly.
Pair Corralation between Amkor Technology and SBI Insurance
Assuming the 90 days horizon Amkor Technology is expected to under-perform the SBI Insurance. In addition to that, Amkor Technology is 1.69 times more volatile than SBI Insurance Group. It trades about -0.09 of its total potential returns per unit of risk. SBI Insurance Group is currently generating about 0.09 per unit of volatility. If you would invest 565.00 in SBI Insurance Group on August 28, 2024 and sell it today you would earn a total of 30.00 from holding SBI Insurance Group or generate 5.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Amkor Technology vs. SBI Insurance Group
Performance |
| Timeline |
| Amkor Technology |
| SBI Insurance Group |
Amkor Technology and SBI Insurance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amkor Technology and SBI Insurance
The main advantage of trading using opposite Amkor Technology and SBI Insurance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amkor Technology position performs unexpectedly, SBI 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 SBI Insurance will offset losses from the drop in SBI Insurance's long position.| Amkor Technology vs. NVIDIA | Amkor Technology vs. NVIDIA | Amkor Technology vs. QUALCOMM Incorporated | Amkor Technology vs. Intel |
| SBI Insurance vs. MAGIC SOFTWARE ENTR | SBI Insurance vs. Alfa Financial Software | SBI Insurance vs. Cal Maine Foods | SBI Insurance vs. JJ SNACK FOODS |
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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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