Correlation Between Aehr Test and Amtech Systems
Can any of the company-specific risk be diversified away by investing in both Aehr Test and Amtech Systems 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 Aehr Test and Amtech Systems into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aehr Test Systems and Amtech Systems, you can compare the effects of market volatilities on Aehr Test and Amtech Systems 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 Aehr Test with a short position of Amtech Systems. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aehr Test and Amtech Systems.
Diversification Opportunities for Aehr Test and Amtech Systems
0.19 | Correlation Coefficient |
Average diversification
The 3 months correlation between Aehr and Amtech is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding Aehr Test Systems and Amtech Systems in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amtech Systems and Aehr Test 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 Aehr Test Systems are associated (or correlated) with Amtech Systems. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amtech Systems has no effect on the direction of Aehr Test i.e., Aehr Test and Amtech Systems go up and down completely randomly.
Pair Corralation between Aehr Test and Amtech Systems
Given the investment horizon of 90 days Aehr Test Systems is expected to generate 1.67 times more return on investment than Amtech Systems. However, Aehr Test is 1.67 times more volatile than Amtech Systems. It trades about 0.03 of its potential returns per unit of risk. Amtech Systems is currently generating about 0.02 per unit of risk. If you would invest 1,156 in Aehr Test Systems on August 24, 2024 and sell it today you would earn a total of 14.00 from holding Aehr Test Systems or generate 1.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aehr Test Systems vs. Amtech Systems
Performance |
| Timeline |
| Aehr Test Systems |
| Amtech Systems |
Aehr Test and Amtech Systems Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aehr Test and Amtech Systems
The main advantage of trading using opposite Aehr Test and Amtech Systems positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aehr Test position performs unexpectedly, Amtech Systems 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 Amtech Systems will offset losses from the drop in Amtech Systems' long position.| Aehr Test vs. Lam Research Corp | Aehr Test vs. KLA Tencor | Aehr Test vs. Kulicke and Soffa | Aehr Test vs. Axcelis Technologies |
| Amtech Systems vs. Ultra Clean Holdings | Amtech Systems vs. Veeco Instruments | Amtech Systems vs. Cohu Inc | Amtech Systems vs. Onto Innovation |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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