Correlation Between Amtech Systems and Gold Fields
Can any of the company-specific risk be diversified away by investing in both Amtech Systems and Gold Fields 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 Gold Fields into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Amtech Systems and Gold Fields Ltd, you can compare the effects of market volatilities on Amtech Systems and Gold Fields 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 Gold Fields. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amtech Systems and Gold Fields.
Diversification Opportunities for Amtech Systems and Gold Fields
-0.51 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Amtech and Gold is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding Amtech Systems and Gold Fields Ltd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gold Fields 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 Gold Fields. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gold Fields has no effect on the direction of Amtech Systems i.e., Amtech Systems and Gold Fields go up and down completely randomly.
Pair Corralation between Amtech Systems and Gold Fields
Given the investment horizon of 90 days Amtech Systems is expected to generate 0.57 times more return on investment than Gold Fields. However, Amtech Systems is 1.75 times less risky than Gold Fields. It trades about 0.08 of its potential returns per unit of risk. Gold Fields Ltd is currently generating about -0.23 per unit of risk. If you would invest 574.00 in Amtech Systems on August 28, 2024 and sell it today you would earn a total of 16.00 from holding Amtech Systems or generate 2.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Amtech Systems vs. Gold Fields Ltd
Performance |
| Timeline |
| Amtech Systems |
| Gold Fields |
Amtech Systems and Gold Fields Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amtech Systems and Gold Fields
The main advantage of trading using opposite Amtech Systems and Gold Fields positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amtech Systems position performs unexpectedly, Gold Fields 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 Gold Fields will offset losses from the drop in Gold Fields' long position.| Amtech Systems vs. Ultra Clean Holdings | Amtech Systems vs. Veeco Instruments | Amtech Systems vs. Cohu Inc | Amtech Systems vs. Onto Innovation |
| Gold Fields vs. Agnico Eagle Mines | Gold Fields vs. Kinross Gold | Gold Fields vs. Harmony Gold Mining | Gold Fields vs. Franco Nevada |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
Other Complementary Tools
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| CEOs Directory Screen CEOs from public companies around the world |