Correlation Between SBI Insurance and Amkor Technology
Can any of the company-specific risk be diversified away by investing in both SBI Insurance and Amkor 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 SBI Insurance and Amkor Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SBI Insurance Group and Amkor Technology, you can compare the effects of market volatilities on SBI Insurance and Amkor 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 SBI Insurance with a short position of Amkor Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of SBI Insurance and Amkor Technology.
Diversification Opportunities for SBI Insurance and Amkor Technology
0.16 | Correlation Coefficient |
Average diversification
The 3 months correlation between SBI and Amkor is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding SBI Insurance Group and Amkor Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amkor Technology and SBI Insurance 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 SBI Insurance Group are associated (or correlated) with Amkor Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amkor Technology has no effect on the direction of SBI Insurance i.e., SBI Insurance and Amkor Technology go up and down completely randomly.
Pair Corralation between SBI Insurance and Amkor Technology
Assuming the 90 days trading horizon SBI Insurance Group is expected to generate 0.59 times more return on investment than Amkor Technology. However, SBI Insurance Group is 1.69 times less risky than Amkor Technology. It trades about 0.09 of its potential returns per unit of risk. Amkor Technology is currently generating about -0.09 per unit of risk. If you would invest 565.00 in SBI Insurance Group on August 28, 2024 and sell it today you would earn a total of 30.00 from holding SBI Insurance Group or generate 5.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
SBI Insurance Group vs. Amkor Technology
Performance |
| Timeline |
| SBI Insurance Group |
| Amkor Technology |
SBI Insurance and Amkor Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SBI Insurance and Amkor Technology
The main advantage of trading using opposite SBI Insurance and Amkor Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SBI Insurance position performs unexpectedly, Amkor 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 Amkor Technology will offset losses from the drop in Amkor Technology's long position.| SBI Insurance vs. MAGIC SOFTWARE ENTR | SBI Insurance vs. Alfa Financial Software | SBI Insurance vs. Cal Maine Foods | SBI Insurance vs. JJ SNACK FOODS |
| Amkor Technology vs. NVIDIA | Amkor Technology vs. NVIDIA | Amkor Technology vs. QUALCOMM Incorporated | Amkor Technology vs. Intel |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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