Correlation Between SOUTHERN and Amkor Technology
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By analyzing existing cross correlation between SOUTHERN CALIF GAS and Amkor Technology, you can compare the effects of market volatilities on SOUTHERN 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 SOUTHERN with a short position of Amkor Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of SOUTHERN and Amkor Technology.
Diversification Opportunities for SOUTHERN and Amkor Technology
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between SOUTHERN and Amkor is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding SOUTHERN CALIF GAS and Amkor Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amkor Technology and SOUTHERN 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 SOUTHERN CALIF GAS 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 SOUTHERN i.e., SOUTHERN and Amkor Technology go up and down completely randomly.
Pair Corralation between SOUTHERN and Amkor Technology
Assuming the 90 days trading horizon SOUTHERN CALIF GAS is expected to generate 47.03 times more return on investment than Amkor Technology. However, SOUTHERN is 47.03 times more volatile 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 7,974 in SOUTHERN CALIF GAS on September 12, 2024 and sell it today you would earn a total of 602.00 from holding SOUTHERN CALIF GAS or generate 7.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 56.97% |
| Values | Daily Returns |
SOUTHERN CALIF GAS vs. Amkor Technology
Performance |
| Timeline |
| SOUTHERN CALIF GAS |
| Amkor Technology |
SOUTHERN and Amkor Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SOUTHERN and Amkor Technology
The main advantage of trading using opposite SOUTHERN and Amkor Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SOUTHERN 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.| SOUTHERN vs. AEP TEX INC | SOUTHERN vs. US BANK NATIONAL | SOUTHERN vs. PayPal Holdings | SOUTHERN vs. Alphabet Inc Class C |
| 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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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