Correlation Between Amkor Technology and Sun Country

Can any of the company-specific risk be diversified away by investing in both Amkor Technology and Sun Country 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 Amkor Technology and Sun Country into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Amkor Technology and Sun Country Airlines, you can compare the effects of market volatilities on Amkor Technology and Sun Country 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 Amkor Technology with a short position of Sun Country. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amkor Technology and Sun Country.

Diversification Opportunities for Amkor Technology and Sun Country

-0.84

Correlation Coefficient

Amkor Technology  Sun Country

Pay attention - limited upside

The 3 months correlation between Amkor and Sun is -0.84. Overlapping area represents the amount of risk that can be diversified away by holding Amkor Technology and Sun Country Airlines in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sun Country Airlines and Amkor Technology 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 Amkor Technology are associated (or correlated) with Sun Country. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sun Country Airlines has no effect on the direction of Amkor Technology i.e., Amkor Technology and Sun Country go up and down completely randomly.

Pair Corralation between Amkor Technology and Sun Country

Given the investment horizon of 90 days Amkor Technology is expected to generate 0.9 times more return on investment than Sun Country. However, Amkor Technology is 1.11 times less risky than Sun Country. It trades about 0.02 of its potential returns per unit of risk. Sun Country Airlines is currently generating about 0.01 per unit of risk. If you would invest  2,455  in Amkor Technology on September 21, 2024 and sell it today you would earn a total of  58.00  from holding Amkor Technology or generate 2.36% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Significant
Accuracy	100.0%
Values	Daily Returns

Amkor Technology  vs.  Sun Country Airlines

Amkor Technology

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Amkor Technology has generated negative risk-adjusted returns adding no value to investors with long positions. Even with inconsistent performance in the last few months, the Stock's forward-looking signals remain relatively invariable which may send shares a bit higher in January 2025. The latest agitation may also be a sign of long-running up-swing for the enterprise retail investors.

Sun Country Airlines

Risk-Adjusted Performance

11 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Sun Country Airlines are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. In spite of fairly unsteady fundamental indicators, Sun Country showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Amkor Technology and Sun Country

The main advantage of trading using opposite Amkor Technology and Sun Country positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amkor Technology position performs unexpectedly, Sun Country 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 Sun Country will offset losses from the drop in Sun Country's long position.

The idea behind Amkor Technology and Sun Country Airlines pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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.