Correlation Between Amtech Systems and Cyberlux Corp
Can any of the company-specific risk be diversified away by investing in both Amtech Systems and Cyberlux Corp 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 Cyberlux Corp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Amtech Systems and Cyberlux Corp, you can compare the effects of market volatilities on Amtech Systems and Cyberlux Corp 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 Cyberlux Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amtech Systems and Cyberlux Corp.
Diversification Opportunities for Amtech Systems and Cyberlux Corp
-0.65 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Amtech and Cyberlux is -0.65. Overlapping area represents the amount of risk that can be diversified away by holding Amtech Systems and Cyberlux Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cyberlux Corp 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 Cyberlux Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cyberlux Corp has no effect on the direction of Amtech Systems i.e., Amtech Systems and Cyberlux Corp go up and down completely randomly.
Pair Corralation between Amtech Systems and Cyberlux Corp
Given the investment horizon of 90 days Amtech Systems is expected to under-perform the Cyberlux Corp. But the stock apears to be less risky and, when comparing its historical volatility, Amtech Systems is 20.49 times less risky than Cyberlux Corp. The stock trades about -0.06 of its potential returns per unit of risk. The Cyberlux Corp is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 0.32 in Cyberlux Corp on August 31, 2024 and sell it today you would earn a total of 0.35 from holding Cyberlux Corp or generate 109.38% 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. Cyberlux Corp
Performance |
| Timeline |
| Amtech Systems |
| Cyberlux Corp |
Amtech Systems and Cyberlux Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amtech Systems and Cyberlux Corp
The main advantage of trading using opposite Amtech Systems and Cyberlux Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amtech Systems position performs unexpectedly, Cyberlux Corp 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 Cyberlux Corp will offset losses from the drop in Cyberlux Corp's long position.| Amtech Systems vs. NVE Corporation | Amtech Systems vs. Photronics | Amtech Systems vs. Kulicke and Soffa | Amtech Systems vs. Alvarium Tiedemann Holdings |
| Cyberlux Corp vs. Nano Labs | Cyberlux Corp vs. Wisekey International Holding | Cyberlux Corp vs. Peraso Inc | Cyberlux Corp vs. GSI Technology |
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.
Other Complementary Tools
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Bonds Directory Find actively traded corporate debentures issued by US companies |