Correlation Between Acm Research and Teradyne
Can any of the company-specific risk be diversified away by investing in both Acm Research and Teradyne 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 Acm Research and Teradyne into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Acm Research and Teradyne, you can compare the effects of market volatilities on Acm Research and Teradyne 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 Acm Research with a short position of Teradyne. Check out your portfolio center. Please also check ongoing floating volatility patterns of Acm Research and Teradyne.
Diversification Opportunities for Acm Research and Teradyne
-0.01 | Correlation Coefficient |
Good diversification
The 3 months correlation between Acm and Teradyne is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding Acm Research and Teradyne in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Teradyne and Acm Research 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 Acm Research are associated (or correlated) with Teradyne. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Teradyne has no effect on the direction of Acm Research i.e., Acm Research and Teradyne go up and down completely randomly.
Pair Corralation between Acm Research and Teradyne
Given the investment horizon of 90 days Acm Research is expected to generate 1.42 times more return on investment than Teradyne. However, Acm Research is 1.42 times more volatile than Teradyne. It trades about -0.02 of its potential returns per unit of risk. Teradyne is currently generating about -0.05 per unit of risk. If you would invest 2,160 in Acm Research on August 29, 2024 and sell it today you would lose (433.00) from holding Acm Research or give up 20.05% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Acm Research vs. Teradyne
Performance |
| Timeline |
| Acm Research |
| Teradyne |
Acm Research and Teradyne Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Acm Research and Teradyne
The main advantage of trading using opposite Acm Research and Teradyne positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Acm Research position performs unexpectedly, Teradyne 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 Teradyne will offset losses from the drop in Teradyne's long position.| Acm Research vs. Axcelis Technologies | Acm Research vs. inTest | Acm Research vs. Lam Research Corp | Acm Research vs. Photronics |
| Teradyne vs. IPG Photonics | Teradyne vs. Ultra Clean Holdings | Teradyne vs. Onto Innovation | Teradyne vs. Cohu Inc |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
Other Complementary Tools
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance |