Correlation Between Amkor Technology and Simon Property
Can any of the company-specific risk be diversified away by investing in both Amkor Technology and Simon Property 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 Simon Property into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Amkor Technology and Simon Property Group, you can compare the effects of market volatilities on Amkor Technology and Simon Property 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 Simon Property. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amkor Technology and Simon Property.
Diversification Opportunities for Amkor Technology and Simon Property
-0.67 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Amkor and Simon is -0.67. Overlapping area represents the amount of risk that can be diversified away by holding Amkor Technology and Simon Property Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Simon Property 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 Simon Property. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Simon Property Group has no effect on the direction of Amkor Technology i.e., Amkor Technology and Simon Property go up and down completely randomly.
Pair Corralation between Amkor Technology and Simon Property
Given the investment horizon of 90 days Amkor Technology is expected to generate 3.62 times less return on investment than Simon Property. In addition to that, Amkor Technology is 2.14 times more volatile than Simon Property Group. It trades about 0.02 of its total potential returns per unit of risk. Simon Property Group is currently generating about 0.12 per unit of volatility. If you would invest 10,233 in Simon Property Group on August 31, 2024 and sell it today you would earn a total of 8,127 from holding Simon Property Group or generate 79.42% 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. Simon Property Group
Performance |
| Timeline |
| Amkor Technology |
| Simon Property Group |
Amkor Technology and Simon Property Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amkor Technology and Simon Property
The main advantage of trading using opposite Amkor Technology and Simon Property positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amkor Technology position performs unexpectedly, Simon Property 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 Simon Property will offset losses from the drop in Simon Property's long position.| Amkor Technology vs. Power Integrations | Amkor Technology vs. Diodes Incorporated | Amkor Technology vs. MACOM Technology Solutions | Amkor Technology vs. Cirrus Logic |
| Simon Property vs. Federal Realty Investment | Simon Property vs. Agree Realty | Simon Property vs. National Retail Properties | Simon Property vs. Kimco Realty |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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