Correlation Between Amkor Technology and Assurant
Can any of the company-specific risk be diversified away by investing in both Amkor Technology and Assurant 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 Assurant into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Amkor Technology and Assurant, you can compare the effects of market volatilities on Amkor Technology and Assurant 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 Assurant. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amkor Technology and Assurant.
Diversification Opportunities for Amkor Technology and Assurant
-0.66 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Amkor and Assurant is -0.66. Overlapping area represents the amount of risk that can be diversified away by holding Amkor Technology and Assurant in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Assurant 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 Assurant. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Assurant has no effect on the direction of Amkor Technology i.e., Amkor Technology and Assurant go up and down completely randomly.
Pair Corralation between Amkor Technology and Assurant
Given the investment horizon of 90 days Amkor Technology is expected to generate 2.68 times less return on investment than Assurant. In addition to that, Amkor Technology is 1.89 times more volatile than Assurant. It trades about 0.02 of its total potential returns per unit of risk. Assurant is currently generating about 0.09 per unit of volatility. If you would invest 12,161 in Assurant on September 4, 2024 and sell it today you would earn a total of 10,412 from holding Assurant or generate 85.62% 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. Assurant
Performance |
| Timeline |
| Amkor Technology |
| Assurant |
Amkor Technology and Assurant Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amkor Technology and Assurant
The main advantage of trading using opposite Amkor Technology and Assurant positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amkor Technology position performs unexpectedly, Assurant 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 Assurant will offset losses from the drop in Assurant's long position.| Amkor Technology vs. NXP Semiconductors NV | Amkor Technology vs. Analog Devices | Amkor Technology vs. Monolithic Power Systems | Amkor Technology vs. ON Semiconductor |
| Assurant vs. Assured Guaranty | Assurant vs. Ambac Financial Group | Assurant vs. AMERISAFE | Assurant vs. Enact Holdings |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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