Correlation Between Singapore Telecommunicatio and Amkor Technology
Can any of the company-specific risk be diversified away by investing in both Singapore Telecommunicatio 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 Singapore Telecommunicatio and Amkor Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Singapore Telecommunications Limited and Amkor Technology, you can compare the effects of market volatilities on Singapore Telecommunicatio 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 Singapore Telecommunicatio with a short position of Amkor Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Singapore Telecommunicatio and Amkor Technology.
Diversification Opportunities for Singapore Telecommunicatio and Amkor Technology
-0.23 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Singapore and Amkor is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding Singapore Telecommunications L and Amkor Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amkor Technology and Singapore Telecommunicatio 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 Singapore Telecommunications Limited 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 Singapore Telecommunicatio i.e., Singapore Telecommunicatio and Amkor Technology go up and down completely randomly.
Pair Corralation between Singapore Telecommunicatio and Amkor Technology
Assuming the 90 days trading horizon Singapore Telecommunications Limited is expected to generate 0.52 times more return on investment than Amkor Technology. However, Singapore Telecommunications Limited is 1.92 times less risky than Amkor Technology. It trades about 0.12 of its potential returns per unit of risk. Amkor Technology is currently generating about -0.02 per unit of risk. If you would invest 168.00 in Singapore Telecommunications Limited on August 28, 2024 and sell it today you would earn a total of 47.00 from holding Singapore Telecommunications Limited or generate 27.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Singapore Telecommunications L vs. Amkor Technology
Performance |
| Timeline |
| Singapore Telecommunicatio |
| Amkor Technology |
Singapore Telecommunicatio and Amkor Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Singapore Telecommunicatio and Amkor Technology
The main advantage of trading using opposite Singapore Telecommunicatio and Amkor Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Singapore Telecommunicatio 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.| Singapore Telecommunicatio vs. T Mobile | Singapore Telecommunicatio vs. ATT Inc | Singapore Telecommunicatio vs. Deutsche Telekom AG |
| 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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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