Correlation Between Amkor Technology and Suburban Propane
Can any of the company-specific risk be diversified away by investing in both Amkor Technology and Suburban Propane 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 Suburban Propane into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Amkor Technology and Suburban Propane Partners, you can compare the effects of market volatilities on Amkor Technology and Suburban Propane 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 Suburban Propane. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amkor Technology and Suburban Propane.
Diversification Opportunities for Amkor Technology and Suburban Propane
-0.54 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Amkor and Suburban is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding Amkor Technology and Suburban Propane Partners in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Suburban Propane Partners 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 Suburban Propane. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Suburban Propane Partners has no effect on the direction of Amkor Technology i.e., Amkor Technology and Suburban Propane go up and down completely randomly.
Pair Corralation between Amkor Technology and Suburban Propane
Given the investment horizon of 90 days Amkor Technology is expected to generate 3.96 times less return on investment than Suburban Propane. But when comparing it to its historical volatility, Amkor Technology is 1.36 times less risky than Suburban Propane. It trades about 0.05 of its potential returns per unit of risk. Suburban Propane Partners is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest 1,845 in Suburban Propane Partners on September 2, 2024 and sell it today you would earn a total of 140.00 from holding Suburban Propane Partners or generate 7.59% 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. Suburban Propane Partners
Performance |
| Timeline |
| Amkor Technology |
| Suburban Propane Partners |
Amkor Technology and Suburban Propane Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amkor Technology and Suburban Propane
The main advantage of trading using opposite Amkor Technology and Suburban Propane positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amkor Technology position performs unexpectedly, Suburban Propane 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 Suburban Propane will offset losses from the drop in Suburban Propane's long position.| Amkor Technology vs. NXP Semiconductors NV | Amkor Technology vs. GSI Technology | Amkor Technology vs. MaxLinear | Amkor Technology vs. Texas Instruments Incorporated |
| Suburban Propane vs. Northwest Natural Gas | Suburban Propane vs. Atmos Energy | Suburban Propane vs. One Gas | Suburban Propane vs. NiSource |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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