Correlation Between Amtech Systems and Chipotle Mexican
Can any of the company-specific risk be diversified away by investing in both Amtech Systems and Chipotle Mexican 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 Chipotle Mexican into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Amtech Systems and Chipotle Mexican Grill, you can compare the effects of market volatilities on Amtech Systems and Chipotle Mexican 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 Chipotle Mexican. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amtech Systems and Chipotle Mexican.
Diversification Opportunities for Amtech Systems and Chipotle Mexican
-0.65 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Amtech and Chipotle is -0.65. Overlapping area represents the amount of risk that can be diversified away by holding Amtech Systems and Chipotle Mexican Grill in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chipotle Mexican Grill 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 Chipotle Mexican. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chipotle Mexican Grill has no effect on the direction of Amtech Systems i.e., Amtech Systems and Chipotle Mexican go up and down completely randomly.
Pair Corralation between Amtech Systems and Chipotle Mexican
Given the investment horizon of 90 days Amtech Systems is expected to generate 0.66 times more return on investment than Chipotle Mexican. However, Amtech Systems is 1.51 times less risky than Chipotle Mexican. It trades about 0.08 of its potential returns per unit of risk. Chipotle Mexican Grill is currently generating about 0.05 per unit of risk. If you would invest 574.00 in Amtech Systems on August 28, 2024 and sell it today you would earn a total of 16.00 from holding Amtech Systems or generate 2.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Amtech Systems vs. Chipotle Mexican Grill
Performance |
| Timeline |
| Amtech Systems |
| Chipotle Mexican Grill |
Amtech Systems and Chipotle Mexican Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amtech Systems and Chipotle Mexican
The main advantage of trading using opposite Amtech Systems and Chipotle Mexican positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amtech Systems position performs unexpectedly, Chipotle Mexican 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 Chipotle Mexican will offset losses from the drop in Chipotle Mexican's long position.| Amtech Systems vs. Ultra Clean Holdings | Amtech Systems vs. Veeco Instruments | Amtech Systems vs. Cohu Inc | Amtech Systems vs. Onto Innovation |
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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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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