Correlation Between Amtech Systems and AudioCodes
Can any of the company-specific risk be diversified away by investing in both Amtech Systems and AudioCodes 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 AudioCodes into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Amtech Systems and AudioCodes, you can compare the effects of market volatilities on Amtech Systems and AudioCodes 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 AudioCodes. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amtech Systems and AudioCodes.
Diversification Opportunities for Amtech Systems and AudioCodes
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Amtech and AudioCodes is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Amtech Systems and AudioCodes in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AudioCodes 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 AudioCodes. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AudioCodes has no effect on the direction of Amtech Systems i.e., Amtech Systems and AudioCodes go up and down completely randomly.
Pair Corralation between Amtech Systems and AudioCodes
Given the investment horizon of 90 days Amtech Systems is expected to generate 1.24 times more return on investment than AudioCodes. However, Amtech Systems is 1.24 times more volatile than AudioCodes. It trades about 0.0 of its potential returns per unit of risk. AudioCodes is currently generating about -0.03 per unit of risk. If you would invest 865.00 in Amtech Systems on August 28, 2024 and sell it today you would lose (275.00) from holding Amtech Systems or give up 31.79% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Amtech Systems vs. AudioCodes
Performance |
| Timeline |
| Amtech Systems |
| AudioCodes |
Amtech Systems and AudioCodes Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amtech Systems and AudioCodes
The main advantage of trading using opposite Amtech Systems and AudioCodes positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amtech Systems position performs unexpectedly, AudioCodes 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 AudioCodes will offset losses from the drop in AudioCodes' long position.| Amtech Systems vs. Ultra Clean Holdings | Amtech Systems vs. Veeco Instruments | Amtech Systems vs. Cohu Inc | Amtech Systems vs. Onto Innovation |
| AudioCodes vs. Aviat Networks | AudioCodes vs. Silicom | AudioCodes vs. Akoustis Technologies | AudioCodes vs. Gilat Satellite Networks |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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