Correlation Between Amkor Technology and Safety Insurance
Can any of the company-specific risk be diversified away by investing in both Amkor Technology and Safety 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 Safety 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 Safety Insurance Group, you can compare the effects of market volatilities on Amkor Technology and Safety 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 Safety Insurance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amkor Technology and Safety Insurance.
Diversification Opportunities for Amkor Technology and Safety Insurance
-0.56 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Amkor and Safety is -0.56. Overlapping area represents the amount of risk that can be diversified away by holding Amkor Technology and Safety Insurance Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Safety Insurance 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 Safety Insurance. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Safety Insurance has no effect on the direction of Amkor Technology i.e., Amkor Technology and Safety Insurance go up and down completely randomly.
Pair Corralation between Amkor Technology and Safety Insurance
Assuming the 90 days horizon Amkor Technology is expected to generate 1.38 times less return on investment than Safety Insurance. In addition to that, Amkor Technology is 1.95 times more volatile than Safety Insurance Group. It trades about 0.02 of its total potential returns per unit of risk. Safety Insurance Group is currently generating about 0.05 per unit of volatility. If you would invest 6,448 in Safety Insurance Group on September 14, 2024 and sell it today you would earn a total of 1,402 from holding Safety Insurance Group or generate 21.74% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.64% |
| Values | Daily Returns |
Amkor Technology vs. Safety Insurance Group
Performance |
| Timeline |
| Amkor Technology |
| Safety Insurance |
Amkor Technology and Safety Insurance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amkor Technology and Safety Insurance
The main advantage of trading using opposite Amkor Technology and Safety Insurance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amkor Technology position performs unexpectedly, Safety 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 Safety Insurance will offset losses from the drop in Safety Insurance's long position.| Amkor Technology vs. Taiwan Semiconductor Manufacturing | Amkor Technology vs. Broadcom | Amkor Technology vs. Superior Plus Corp | Amkor Technology vs. SIVERS SEMICONDUCTORS AB |
| Safety Insurance vs. Insurance Australia Group | Safety Insurance vs. Superior Plus Corp | Safety Insurance vs. SIVERS SEMICONDUCTORS AB | Safety Insurance vs. CHINA HUARONG ENERHD 50 |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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