Correlation Between Simon Property and Amkor Technology
Can any of the company-specific risk be diversified away by investing in both Simon Property 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 Simon Property and Amkor Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Simon Property Group and Amkor Technology, you can compare the effects of market volatilities on Simon Property 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 Simon Property with a short position of Amkor Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Simon Property and Amkor Technology.
Diversification Opportunities for Simon Property and Amkor Technology
0.32 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Simon and Amkor is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding Simon Property Group and Amkor Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amkor Technology and Simon Property 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 Simon Property 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 Simon Property i.e., Simon Property and Amkor Technology go up and down completely randomly.
Pair Corralation between Simon Property and Amkor Technology
Assuming the 90 days trading horizon Simon Property is expected to generate 15.03 times less return on investment than Amkor Technology. But when comparing it to its historical volatility, Simon Property Group is 1.12 times less risky than Amkor Technology. It trades about 0.01 of its potential returns per unit of risk. Amkor Technology is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 2,527 in Amkor Technology on October 21, 2024 and sell it today you would earn a total of 64.00 from holding Amkor Technology or generate 2.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Simon Property Group vs. Amkor Technology
Performance |
| Timeline |
| Simon Property Group |
| Amkor Technology |
Simon Property and Amkor Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Simon Property and Amkor Technology
The main advantage of trading using opposite Simon Property and Amkor Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Simon Property 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.| Simon Property vs. Wheeler Real Estate | Simon Property vs. CBL Associates Properties | Simon Property vs. Saul Centers | Simon Property vs. Federal Realty Investment |
| 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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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