Correlation Between Samsung Electronics and Amkor Technology
Can any of the company-specific risk be diversified away by investing in both Samsung Electronics 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 Samsung Electronics and Amkor Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Samsung Electronics Co and Amkor Technology, you can compare the effects of market volatilities on Samsung Electronics 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 Samsung Electronics with a short position of Amkor Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Samsung Electronics and Amkor Technology.
Diversification Opportunities for Samsung Electronics and Amkor Technology
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Samsung and Amkor is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Samsung Electronics Co and Amkor Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amkor Technology and Samsung Electronics 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 Samsung Electronics Co 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 Samsung Electronics i.e., Samsung Electronics and Amkor Technology go up and down completely randomly.
Pair Corralation between Samsung Electronics and Amkor Technology
Assuming the 90 days trading horizon Samsung Electronics Co is expected to generate 1.09 times more return on investment than Amkor Technology. However, Samsung Electronics is 1.09 times more volatile than Amkor Technology. It trades about 0.03 of its potential returns per unit of risk. Amkor Technology is currently generating about -0.11 per unit of risk. If you would invest 83,400 in Samsung Electronics Co on August 29, 2024 and sell it today you would earn a total of 800.00 from holding Samsung Electronics Co or generate 0.96% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Samsung Electronics Co vs. Amkor Technology
Performance |
| Timeline |
| Samsung Electronics |
| Amkor Technology |
Samsung Electronics and Amkor Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Samsung Electronics and Amkor Technology
The main advantage of trading using opposite Samsung Electronics and Amkor Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Samsung Electronics 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.| Samsung Electronics vs. Samsung Electronics Co | Samsung Electronics vs. Microsoft | Samsung Electronics vs. Tencent Holdings |
| 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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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