Correlation Between Amkor Technology and Pekin Life
Can any of the company-specific risk be diversified away by investing in both Amkor Technology and Pekin Life 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 Pekin Life into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Amkor Technology and Pekin Life Insurance, you can compare the effects of market volatilities on Amkor Technology and Pekin Life 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 Pekin Life. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amkor Technology and Pekin Life.
Diversification Opportunities for Amkor Technology and Pekin Life
-0.47 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Amkor and Pekin is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding Amkor Technology and Pekin Life Insurance in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pekin Life 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 Pekin Life. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pekin Life Insurance has no effect on the direction of Amkor Technology i.e., Amkor Technology and Pekin Life go up and down completely randomly.
Pair Corralation between Amkor Technology and Pekin Life
Given the investment horizon of 90 days Amkor Technology is expected to generate 1.55 times more return on investment than Pekin Life. However, Amkor Technology is 1.55 times more volatile than Pekin Life Insurance. It trades about 0.03 of its potential returns per unit of risk. Pekin Life Insurance is currently generating about 0.01 per unit of risk. If you would invest 2,114 in Amkor Technology on August 31, 2024 and sell it today you would earn a total of 488.00 from holding Amkor Technology or generate 23.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Amkor Technology vs. Pekin Life Insurance
Performance |
| Timeline |
| Amkor Technology |
| Pekin Life Insurance |
Amkor Technology and Pekin Life Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amkor Technology and Pekin Life
The main advantage of trading using opposite Amkor Technology and Pekin Life positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amkor Technology position performs unexpectedly, Pekin Life 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 Pekin Life will offset losses from the drop in Pekin Life's long position.| Amkor Technology vs. Power Integrations | Amkor Technology vs. Diodes Incorporated | Amkor Technology vs. MACOM Technology Solutions | Amkor Technology vs. Cirrus Logic |
| Pekin Life vs. HUMANA INC | Pekin Life vs. SCOR PK | Pekin Life vs. Aquagold International | Pekin Life vs. Thrivent High Yield |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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