Correlation Between National Health and Amkor Technology
Can any of the company-specific risk be diversified away by investing in both National Health 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 National Health and Amkor Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between National Health Investors and Amkor Technology, you can compare the effects of market volatilities on National Health 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 National Health with a short position of Amkor Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of National Health and Amkor Technology.
Diversification Opportunities for National Health and Amkor Technology
-0.12 | Correlation Coefficient |
Good diversification
The 3 months correlation between National and Amkor is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding National Health Investors and Amkor Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amkor Technology and National Health 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 National Health Investors 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 National Health i.e., National Health and Amkor Technology go up and down completely randomly.
Pair Corralation between National Health and Amkor Technology
Assuming the 90 days trading horizon National Health Investors is expected to generate 0.99 times more return on investment than Amkor Technology. However, National Health Investors is 1.01 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 -0.12 per unit of risk. If you would invest 6,900 in National Health Investors on August 27, 2024 and sell it today you would earn a total of 450.00 from holding National Health Investors or generate 6.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
National Health Investors vs. Amkor Technology
Performance |
| Timeline |
| National Health Investors |
| Amkor Technology |
National Health and Amkor Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with National Health and Amkor Technology
The main advantage of trading using opposite National Health and Amkor Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if National Health 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.| National Health vs. LG Display Co | National Health vs. Ming Le Sports | National Health vs. USWE SPORTS AB | National Health vs. Gamma Communications plc |
| 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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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