Correlation Between Sun Country and Amkor Technology
Can any of the company-specific risk be diversified away by investing in both Sun Country 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 Sun Country and Amkor Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sun Country Airlines and Amkor Technology, you can compare the effects of market volatilities on Sun Country 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 Sun Country with a short position of Amkor Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sun Country and Amkor Technology.
Diversification Opportunities for Sun Country and Amkor Technology
-0.82 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Sun and Amkor is -0.82. Overlapping area represents the amount of risk that can be diversified away by holding Sun Country Airlines and Amkor Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amkor Technology and Sun Country 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 Sun Country Airlines 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 Sun Country i.e., Sun Country and Amkor Technology go up and down completely randomly.
Pair Corralation between Sun Country and Amkor Technology
Given the investment horizon of 90 days Sun Country Airlines is expected to under-perform the Amkor Technology. In addition to that, Sun Country is 1.11 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 2,617 in Amkor Technology on August 31, 2024 and sell it today you would earn a total of 27.00 from holding Amkor Technology or generate 1.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sun Country Airlines vs. Amkor Technology
Performance |
| Timeline |
| Sun Country Airlines |
| Amkor Technology |
Sun Country and Amkor Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sun Country and Amkor Technology
The main advantage of trading using opposite Sun Country and Amkor Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sun Country 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.| Sun Country vs. JetBlue Airways Corp | Sun Country vs. Allegiant Travel | Sun Country vs. SkyWest | Sun Country vs. Air Transport Services |
| 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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
Other Complementary Tools
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum |