Correlation Between Grupo Simec and Amkor Technology
Can any of the company-specific risk be diversified away by investing in both Grupo Simec 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 Grupo Simec and Amkor Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Grupo Simec SAB and Amkor Technology, you can compare the effects of market volatilities on Grupo Simec 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 Grupo Simec with a short position of Amkor Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Grupo Simec and Amkor Technology.
Diversification Opportunities for Grupo Simec and Amkor Technology
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Grupo and Amkor is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Grupo Simec SAB and Amkor Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amkor Technology and Grupo Simec 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 Grupo Simec SAB 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 Grupo Simec i.e., Grupo Simec and Amkor Technology go up and down completely randomly.
Pair Corralation between Grupo Simec and Amkor Technology
Considering the 90-day investment horizon Grupo Simec is expected to generate 2.44 times less return on investment than Amkor Technology. In addition to that, Grupo Simec is 1.22 times more volatile than Amkor Technology. It trades about 0.01 of its total potential returns per unit of risk. Amkor Technology is currently generating about 0.02 per unit of volatility. If you would invest 2,578 in Amkor Technology on August 31, 2024 and sell it today you would earn a total of 24.00 from holding Amkor Technology or generate 0.93% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 88.48% |
| Values | Daily Returns |
Grupo Simec SAB vs. Amkor Technology
Performance |
| Timeline |
| Grupo Simec SAB |
| Amkor Technology |
Grupo Simec and Amkor Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Grupo Simec and Amkor Technology
The main advantage of trading using opposite Grupo Simec and Amkor Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Grupo Simec 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.| Grupo Simec vs. Nucor Corp | Grupo Simec vs. Steel Dynamics | Grupo Simec vs. ArcelorMittal SA ADR | Grupo Simec vs. Gerdau SA ADR |
| Amkor Technology vs. Power Integrations | Amkor Technology vs. Diodes Incorporated | Amkor Technology vs. MACOM Technology Solutions | Amkor Technology vs. Cirrus Logic |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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