Correlation Between Amtech Systems and Ecovyst
Can any of the company-specific risk be diversified away by investing in both Amtech Systems and Ecovyst 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 Ecovyst into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Amtech Systems and Ecovyst, you can compare the effects of market volatilities on Amtech Systems and Ecovyst 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 Ecovyst. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amtech Systems and Ecovyst.
Diversification Opportunities for Amtech Systems and Ecovyst
-0.33 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Amtech and Ecovyst is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding Amtech Systems and Ecovyst in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ecovyst 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 Ecovyst. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ecovyst has no effect on the direction of Amtech Systems i.e., Amtech Systems and Ecovyst go up and down completely randomly.
Pair Corralation between Amtech Systems and Ecovyst
Given the investment horizon of 90 days Amtech Systems is expected to generate 8.63 times less return on investment than Ecovyst. But when comparing it to its historical volatility, Amtech Systems is 2.06 times less risky than Ecovyst. It trades about 0.08 of its potential returns per unit of risk. Ecovyst is currently generating about 0.35 of returns per unit of risk over similar time horizon. If you would invest 634.00 in Ecovyst on August 28, 2024 and sell it today you would earn a total of 180.00 from holding Ecovyst or generate 28.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Amtech Systems vs. Ecovyst
Performance |
| Timeline |
| Amtech Systems |
| Ecovyst |
Amtech Systems and Ecovyst Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amtech Systems and Ecovyst
The main advantage of trading using opposite Amtech Systems and Ecovyst positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amtech Systems position performs unexpectedly, Ecovyst 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 Ecovyst will offset losses from the drop in Ecovyst's long position.| Amtech Systems vs. Ultra Clean Holdings | Amtech Systems vs. Veeco Instruments | Amtech Systems vs. Cohu Inc | Amtech Systems vs. Onto Innovation |
| Ecovyst vs. Orion Engineered Carbons | Ecovyst vs. Cabot | Ecovyst vs. Minerals Technologies | Ecovyst vs. Quaker Chemical |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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