Correlation Between Asm Pacific and Atomera
Can any of the company-specific risk be diversified away by investing in both Asm Pacific and Atomera 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 Asm Pacific and Atomera into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Asm Pacific Technology and Atomera, you can compare the effects of market volatilities on Asm Pacific and Atomera 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 Asm Pacific with a short position of Atomera. Check out your portfolio center. Please also check ongoing floating volatility patterns of Asm Pacific and Atomera.
Diversification Opportunities for Asm Pacific and Atomera
-0.25 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Asm and Atomera is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding Asm Pacific Technology and Atomera in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Atomera and Asm Pacific 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 Asm Pacific Technology are associated (or correlated) with Atomera. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Atomera has no effect on the direction of Asm Pacific i.e., Asm Pacific and Atomera go up and down completely randomly.
Pair Corralation between Asm Pacific and Atomera
Assuming the 90 days horizon Asm Pacific is expected to generate 3.26 times less return on investment than Atomera. But when comparing it to its historical volatility, Asm Pacific Technology is 2.05 times less risky than Atomera. It trades about 0.02 of its potential returns per unit of risk. Atomera is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 824.00 in Atomera on October 25, 2024 and sell it today you would earn a total of 248.00 from holding Atomera or generate 30.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.8% |
| Values | Daily Returns |
Asm Pacific Technology vs. Atomera
Performance |
| Timeline |
| Asm Pacific Technology |
| Atomera |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Solid
Asm Pacific and Atomera Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Asm Pacific and Atomera
The main advantage of trading using opposite Asm Pacific and Atomera positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Asm Pacific position performs unexpectedly, Atomera 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 Atomera will offset losses from the drop in Atomera's long position.| Asm Pacific vs. Disco Corp ADR | Asm Pacific vs. Tokyo Electron | Asm Pacific vs. Lasertec | Asm Pacific vs. Sumco Corp ADR |
| Atomera vs. Axcelis Technologies | Atomera vs. Lam Research Corp | Atomera vs. Photronics | Atomera vs. indie Semiconductor |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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