Correlation Between SLR Investment and Amkor Technology
Can any of the company-specific risk be diversified away by investing in both SLR Investment 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 SLR Investment and Amkor Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SLR Investment Corp and Amkor Technology, you can compare the effects of market volatilities on SLR Investment 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 SLR Investment with a short position of Amkor Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of SLR Investment and Amkor Technology.
Diversification Opportunities for SLR Investment and Amkor Technology
-0.62 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between SLR and Amkor is -0.62. Overlapping area represents the amount of risk that can be diversified away by holding SLR Investment Corp and Amkor Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amkor Technology and SLR Investment 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 SLR Investment Corp 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 SLR Investment i.e., SLR Investment and Amkor Technology go up and down completely randomly.
Pair Corralation between SLR Investment and Amkor Technology
Assuming the 90 days horizon SLR Investment Corp is expected to generate 0.39 times more return on investment than Amkor Technology. However, SLR Investment Corp is 2.6 times less risky than Amkor Technology. It trades about 0.07 of its potential returns per unit of risk. Amkor Technology is currently generating about 0.01 per unit of risk. If you would invest 1,095 in SLR Investment Corp on October 11, 2024 and sell it today you would earn a total of 491.00 from holding SLR Investment Corp or generate 44.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
SLR Investment Corp vs. Amkor Technology
Performance |
| Timeline |
| SLR Investment Corp |
| Amkor Technology |
SLR Investment and Amkor Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SLR Investment and Amkor Technology
The main advantage of trading using opposite SLR Investment and Amkor Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SLR Investment 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.| SLR Investment vs. MAGNUM MINING EXP | SLR Investment vs. ADRIATIC METALS LS 013355 | SLR Investment vs. Perseus Mining Limited | SLR Investment vs. ARDAGH METAL PACDL 0001 |
| Amkor Technology vs. ALGOMA STEEL GROUP | Amkor Technology vs. PennantPark Investment | Amkor Technology vs. Japan Asia Investment | Amkor Technology vs. SLR Investment Corp |
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 Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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