Correlation Between Amtech Systems and Advanced Micro
Can any of the company-specific risk be diversified away by investing in both Amtech Systems and Advanced Micro 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 Amtech Systems and Advanced Micro into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Amtech Systems and Advanced Micro Devices, you can compare the effects of market volatilities on Amtech Systems and Advanced Micro 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 Amtech Systems with a short position of Advanced Micro. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amtech Systems and Advanced Micro.
Diversification Opportunities for Amtech Systems and Advanced Micro
-0.01 | Correlation Coefficient |
Good diversification
The 3 months correlation between Amtech and Advanced is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding Amtech Systems and Advanced Micro Devices in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Advanced Micro Devices and Amtech Systems 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 Amtech Systems are associated (or correlated) with Advanced Micro. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Advanced Micro Devices has no effect on the direction of Amtech Systems i.e., Amtech Systems and Advanced Micro go up and down completely randomly.
Pair Corralation between Amtech Systems and Advanced Micro
Given the investment horizon of 90 days Amtech Systems is expected to under-perform the Advanced Micro. In addition to that, Amtech Systems is 1.39 times more volatile than Advanced Micro Devices. It trades about -0.01 of its total potential returns per unit of risk. Advanced Micro Devices is currently generating about 0.03 per unit of volatility. If you would invest 12,201 in Advanced Micro Devices on August 24, 2024 and sell it today you would earn a total of 1,586 from holding Advanced Micro Devices or generate 13.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Amtech Systems vs. Advanced Micro Devices
Performance |
| Timeline |
| Amtech Systems |
| Advanced Micro Devices |
Amtech Systems and Advanced Micro Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amtech Systems and Advanced Micro
The main advantage of trading using opposite Amtech Systems and Advanced Micro positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amtech Systems position performs unexpectedly, Advanced Micro 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 Advanced Micro will offset losses from the drop in Advanced Micro's long position.| Amtech Systems vs. Ultra Clean Holdings | Amtech Systems vs. Cohu Inc | Amtech Systems vs. Ichor Holdings | Amtech Systems vs. Entegris |
| Advanced Micro vs. Eshallgo Class A | Advanced Micro vs. Amtech Systems | Advanced Micro vs. Gold Fields Ltd | Advanced Micro vs. Aegean Airlines SA |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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