Correlation Between Amtech Systems and GSI Technology
Can any of the company-specific risk be diversified away by investing in both Amtech Systems and GSI Technology 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 GSI Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Amtech Systems and GSI Technology, you can compare the effects of market volatilities on Amtech Systems and GSI Technology 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 GSI Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amtech Systems and GSI Technology.
Diversification Opportunities for Amtech Systems and GSI Technology
-0.06 | Correlation Coefficient |
Good diversification
The 3 months correlation between Amtech and GSI is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding Amtech Systems and GSI Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GSI Technology 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 GSI Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GSI Technology has no effect on the direction of Amtech Systems i.e., Amtech Systems and GSI Technology go up and down completely randomly.
Pair Corralation between Amtech Systems and GSI Technology
Given the investment horizon of 90 days Amtech Systems is expected to under-perform the GSI Technology. But the stock apears to be less risky and, when comparing its historical volatility, Amtech Systems is 1.73 times less risky than GSI Technology. The stock trades about -0.01 of its potential returns per unit of risk. The GSI Technology is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 257.00 in GSI Technology on November 28, 2024 and sell it today you would earn a total of 42.00 from holding GSI Technology or generate 16.34% 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. GSI Technology
Performance |
| Timeline |
| Amtech Systems |
| GSI Technology |
Amtech Systems and GSI Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amtech Systems and GSI Technology
The main advantage of trading using opposite Amtech Systems and GSI Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amtech Systems position performs unexpectedly, GSI Technology 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 GSI Technology will offset losses from the drop in GSI Technology's long position.| Amtech Systems vs. Ultra Clean Holdings | Amtech Systems vs. Veeco Instruments | Amtech Systems vs. Cohu Inc | Amtech Systems vs. Onto Innovation |
| GSI Technology vs. SEALSQ Corp | GSI Technology vs. Nano Labs | GSI Technology vs. SemiLEDS | GSI Technology vs. Wisekey International Holding |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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