Correlation Between SEI INVESTMENTS and Amkor Technology
Can any of the company-specific risk be diversified away by investing in both SEI INVESTMENTS 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 SEI INVESTMENTS and Amkor Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SEI INVESTMENTS and Amkor Technology, you can compare the effects of market volatilities on SEI INVESTMENTS 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 SEI INVESTMENTS with a short position of Amkor Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of SEI INVESTMENTS and Amkor Technology.
Diversification Opportunities for SEI INVESTMENTS and Amkor Technology
-0.71 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between SEI and Amkor is -0.71. Overlapping area represents the amount of risk that can be diversified away by holding SEI INVESTMENTS and Amkor Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amkor Technology and SEI INVESTMENTS 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 SEI INVESTMENTS 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 SEI INVESTMENTS i.e., SEI INVESTMENTS and Amkor Technology go up and down completely randomly.
Pair Corralation between SEI INVESTMENTS and Amkor Technology
Assuming the 90 days trading horizon SEI INVESTMENTS is expected to generate 0.28 times more return on investment than Amkor Technology. However, SEI INVESTMENTS is 3.57 times less risky than Amkor Technology. It trades about 0.08 of its potential returns per unit of risk. Amkor Technology is currently generating about 0.01 per unit of risk. If you would invest 5,624 in SEI INVESTMENTS on September 3, 2024 and sell it today you would earn a total of 2,176 from holding SEI INVESTMENTS or generate 38.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
SEI INVESTMENTS vs. Amkor Technology
Performance |
| Timeline |
| SEI INVESTMENTS |
| Amkor Technology |
SEI INVESTMENTS and Amkor Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SEI INVESTMENTS and Amkor Technology
The main advantage of trading using opposite SEI INVESTMENTS and Amkor Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SEI INVESTMENTS 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.| SEI INVESTMENTS vs. TIANDE CHEMICAL | SEI INVESTMENTS vs. CHEMICAL INDUSTRIES | SEI INVESTMENTS vs. Grupo Carso SAB | SEI INVESTMENTS vs. GRUPO CARSO A1 |
| Amkor Technology vs. NVIDIA | Amkor Technology vs. Taiwan Semiconductor Manufacturing | Amkor Technology vs. Advanced Micro Devices | 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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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