Correlation Between Asm Pacific and Cohu
Can any of the company-specific risk be diversified away by investing in both Asm Pacific 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 Asm Pacific and Cohu 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 Cohu Inc, you can compare the effects of market volatilities on Asm Pacific 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 Asm Pacific with a short position of Cohu. Check out your portfolio center. Please also check ongoing floating volatility patterns of Asm Pacific and Cohu.
Diversification Opportunities for Asm Pacific and Cohu
-0.05 | Correlation Coefficient |
Good diversification
The 3 months correlation between Asm and Cohu is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding Asm Pacific Technology and Cohu Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cohu Inc 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 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 Asm Pacific i.e., Asm Pacific and Cohu go up and down completely randomly.
Pair Corralation between Asm Pacific and Cohu
Assuming the 90 days horizon Asm Pacific Technology is expected to under-perform the Cohu. But the pink sheet apears to be less risky and, when comparing its historical volatility, Asm Pacific Technology is 1.54 times less risky than Cohu. The pink sheet trades about -0.44 of its potential returns per unit of risk. The Cohu Inc is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 2,523 in Cohu Inc on August 25, 2024 and sell it today you would earn a total of 142.00 from holding Cohu Inc or generate 5.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Asm Pacific Technology vs. Cohu Inc
Performance |
| Timeline |
| Asm Pacific Technology |
| Cohu Inc |
Asm Pacific and Cohu Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Asm Pacific and Cohu
The main advantage of trading using opposite Asm Pacific and Cohu positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Asm Pacific 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.| Asm Pacific vs. Disco Corp ADR | Asm Pacific vs. Tokyo Electron | Asm Pacific vs. Lasertec | Asm Pacific vs. Sumco Corp ADR |
| Cohu vs. Amtech Systems | Cohu vs. Veeco Instruments | Cohu vs. Ichor 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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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