Correlation Between Amtech Systems and Flexible Solutions
Can any of the company-specific risk be diversified away by investing in both Amtech Systems and Flexible Solutions 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 Flexible Solutions into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Amtech Systems and Flexible Solutions International, you can compare the effects of market volatilities on Amtech Systems and Flexible Solutions 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 Flexible Solutions. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amtech Systems and Flexible Solutions.
Diversification Opportunities for Amtech Systems and Flexible Solutions
-0.71 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Amtech and Flexible is -0.71. Overlapping area represents the amount of risk that can be diversified away by holding Amtech Systems and Flexible Solutions Internation in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Flexible Solutions 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 Flexible Solutions. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Flexible Solutions has no effect on the direction of Amtech Systems i.e., Amtech Systems and Flexible Solutions go up and down completely randomly.
Pair Corralation between Amtech Systems and Flexible Solutions
Given the investment horizon of 90 days Amtech Systems is expected to under-perform the Flexible Solutions. In addition to that, Amtech Systems is 1.04 times more volatile than Flexible Solutions International. It trades about -0.01 of its total potential returns per unit of risk. Flexible Solutions International is currently generating about 0.05 per unit of volatility. If you would invest 254.00 in Flexible Solutions International on August 28, 2024 and sell it today you would earn a total of 150.00 from holding Flexible Solutions International or generate 59.06% 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. Flexible Solutions Internation
Performance |
| Timeline |
| Amtech Systems |
| Flexible Solutions |
Amtech Systems and Flexible Solutions Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amtech Systems and Flexible Solutions
The main advantage of trading using opposite Amtech Systems and Flexible Solutions positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amtech Systems position performs unexpectedly, Flexible Solutions 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 Flexible Solutions will offset losses from the drop in Flexible Solutions' long position.The idea behind Amtech Systems and Flexible Solutions International pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Flexible Solutions vs. Oil Dri | Flexible Solutions vs. H B Fuller | Flexible Solutions vs. Northern Technologies | Flexible Solutions vs. Cabot |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
Other Complementary Tools
| Transaction History View history of all your transactions and understand their impact on performance | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes |