Correlation Between Amkor Technology and Senmiao Technology
Can any of the company-specific risk be diversified away by investing in both Amkor Technology and Senmiao 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 Amkor Technology and Senmiao Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Amkor Technology and Senmiao Technology, you can compare the effects of market volatilities on Amkor Technology and Senmiao 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 Amkor Technology with a short position of Senmiao Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amkor Technology and Senmiao Technology.
Diversification Opportunities for Amkor Technology and Senmiao Technology
-0.03 | Correlation Coefficient |
Good diversification
The 3 months correlation between Amkor and Senmiao is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding Amkor Technology and Senmiao Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Senmiao Technology 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 Senmiao Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Senmiao Technology has no effect on the direction of Amkor Technology i.e., Amkor Technology and Senmiao Technology go up and down completely randomly.
Pair Corralation between Amkor Technology and Senmiao Technology
Given the investment horizon of 90 days Amkor Technology is expected to generate 0.73 times more return on investment than Senmiao Technology. However, Amkor Technology is 1.37 times less risky than Senmiao Technology. It trades about -0.16 of its potential returns per unit of risk. Senmiao Technology is currently generating about -0.19 per unit of risk. If you would invest 2,653 in Amkor Technology on November 4, 2024 and sell it today you would lose (192.00) from holding Amkor Technology or give up 7.24% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Amkor Technology vs. Senmiao Technology
Performance |
| Timeline |
| Amkor Technology |
| Senmiao Technology |
Amkor Technology and Senmiao Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amkor Technology and Senmiao Technology
The main advantage of trading using opposite Amkor Technology and Senmiao Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amkor Technology position performs unexpectedly, Senmiao 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 Senmiao Technology will offset losses from the drop in Senmiao Technology's long position.| Amkor Technology vs. Power Integrations | Amkor Technology vs. Diodes Incorporated | Amkor Technology vs. MACOM Technology Solutions | Amkor Technology vs. Cirrus Logic |
| Senmiao Technology vs. X Financial Class | Senmiao Technology vs. Yirendai | Senmiao Technology vs. Pintec Technology Holdings | Senmiao Technology vs. Qudian Inc |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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