Correlation Between Amtech Systems and Ecopetrol
Can any of the company-specific risk be diversified away by investing in both Amtech Systems and Ecopetrol 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 Ecopetrol into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Amtech Systems and Ecopetrol SA ADR, you can compare the effects of market volatilities on Amtech Systems and Ecopetrol 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 Ecopetrol. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amtech Systems and Ecopetrol.
Diversification Opportunities for Amtech Systems and Ecopetrol
-0.67 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Amtech and Ecopetrol is -0.67. Overlapping area represents the amount of risk that can be diversified away by holding Amtech Systems and Ecopetrol SA ADR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ecopetrol SA ADR 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 Ecopetrol. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ecopetrol SA ADR has no effect on the direction of Amtech Systems i.e., Amtech Systems and Ecopetrol go up and down completely randomly.
Pair Corralation between Amtech Systems and Ecopetrol
Given the investment horizon of 90 days Amtech Systems is expected to generate 1.58 times less return on investment than Ecopetrol. In addition to that, Amtech Systems is 1.7 times more volatile than Ecopetrol SA ADR. It trades about 0.13 of its total potential returns per unit of risk. Ecopetrol SA ADR is currently generating about 0.34 per unit of volatility. If you would invest 845.00 in Ecopetrol SA ADR on November 18, 2024 and sell it today you would earn a total of 180.00 from holding Ecopetrol SA ADR or generate 21.3% 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. Ecopetrol SA ADR
Performance |
| Timeline |
| Amtech Systems |
| Ecopetrol SA ADR |
Amtech Systems and Ecopetrol Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amtech Systems and Ecopetrol
The main advantage of trading using opposite Amtech Systems and Ecopetrol positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amtech Systems position performs unexpectedly, Ecopetrol 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 Ecopetrol will offset losses from the drop in Ecopetrol's long position.| Amtech Systems vs. Ultra Clean Holdings | Amtech Systems vs. Veeco Instruments | Amtech Systems vs. Cohu Inc | Amtech Systems vs. Onto Innovation |
| Ecopetrol vs. Petroleo Brasileiro Petrobras | Ecopetrol vs. Equinor ASA ADR | Ecopetrol vs. Eni SpA ADR | Ecopetrol vs. Cenovus Energy |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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