Correlation Between Amtech Systems and Coty
Can any of the company-specific risk be diversified away by investing in both Amtech Systems and Coty 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 Coty into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Amtech Systems and Coty Inc, you can compare the effects of market volatilities on Amtech Systems and Coty 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 Coty. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amtech Systems and Coty.
Diversification Opportunities for Amtech Systems and Coty
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Amtech and Coty is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Amtech Systems and Coty Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Coty Inc 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 Coty. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Coty Inc has no effect on the direction of Amtech Systems i.e., Amtech Systems and Coty go up and down completely randomly.
Pair Corralation between Amtech Systems and Coty
Given the investment horizon of 90 days Amtech Systems is expected to under-perform the Coty. In addition to that, Amtech Systems is 1.82 times more volatile than Coty Inc. It trades about 0.0 of its total potential returns per unit of risk. Coty Inc is currently generating about 0.0 per unit of volatility. If you would invest 790.00 in Coty Inc on August 24, 2024 and sell it today you would lose (58.00) from holding Coty Inc or give up 7.34% 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. Coty Inc
Performance |
| Timeline |
| Amtech Systems |
| Coty Inc |
Amtech Systems and Coty Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amtech Systems and Coty
The main advantage of trading using opposite Amtech Systems and Coty positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amtech Systems position performs unexpectedly, Coty 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 Coty will offset losses from the drop in Coty's long position.| Amtech Systems vs. Ultra Clean Holdings | Amtech Systems vs. Cohu Inc | Amtech Systems vs. Ichor Holdings | Amtech Systems vs. Entegris |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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