Correlation Between Aehr Test and Cohu
Can any of the company-specific risk be diversified away by investing in both Aehr Test and Cohu 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 Cohu 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 Cohu Inc, you can compare the effects of market volatilities on Aehr Test and Cohu 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 Cohu. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aehr Test and Cohu.
Diversification Opportunities for Aehr Test and Cohu
Good diversification
The 3 months correlation between Aehr and Cohu is -0.11. Overlapping area represents the amount of risk that can be diversified away by holding Aehr Test Systems and Cohu Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cohu Inc 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 Cohu. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cohu Inc has no effect on the direction of Aehr Test i.e., Aehr Test and Cohu go up and down completely randomly.
Pair Corralation between Aehr Test and Cohu
Given the investment horizon of 90 days Aehr Test Systems is expected to generate 3.17 times more return on investment than Cohu. However, Aehr Test is 3.17 times more volatile than Cohu Inc. It trades about 0.0 of its potential returns per unit of risk. Cohu Inc is currently generating about -0.08 per unit of risk. If you would invest 1,332 in Aehr Test Systems on October 20, 2024 and sell it today you would lose (86.00) from holding Aehr Test Systems or give up 6.46% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aehr Test Systems vs. Cohu Inc
Performance |
| Timeline |
| Aehr Test Systems |
| Cohu Inc |
Aehr Test and Cohu Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aehr Test and Cohu
The main advantage of trading using opposite Aehr Test and Cohu positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aehr Test position performs unexpectedly, Cohu 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 Cohu will offset losses from the drop in Cohu's long position.| Aehr Test vs. Photronics | Aehr Test vs. Lam Research Corp | Aehr Test vs. KLA Tencor | Aehr Test vs. Kulicke and Soffa |
| Cohu vs. Onto Innovation | Cohu vs. Photronics | Cohu vs. Ultra Clean Holdings | Cohu vs. Axcelis Technologies |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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