Correlation Between Amtech Systems and Kemper
Can any of the company-specific risk be diversified away by investing in both Amtech Systems and Kemper 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 Kemper into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Amtech Systems and Kemper, you can compare the effects of market volatilities on Amtech Systems and Kemper 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 Kemper. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amtech Systems and Kemper.
Diversification Opportunities for Amtech Systems and Kemper
-0.43 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Amtech and Kemper is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding Amtech Systems and Kemper in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kemper 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 Kemper. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kemper has no effect on the direction of Amtech Systems i.e., Amtech Systems and Kemper go up and down completely randomly.
Pair Corralation between Amtech Systems and Kemper
Given the investment horizon of 90 days Amtech Systems is expected to under-perform the Kemper. In addition to that, Amtech Systems is 1.76 times more volatile than Kemper. It trades about 0.0 of its total potential returns per unit of risk. Kemper is currently generating about 0.04 per unit of volatility. If you would invest 5,326 in Kemper on August 24, 2024 and sell it today you would earn a total of 1,884 from holding Kemper or generate 35.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.8% |
| Values | Daily Returns |
Amtech Systems vs. Kemper
Performance |
| Timeline |
| Amtech Systems |
| Kemper |
Amtech Systems and Kemper Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amtech Systems and Kemper
The main advantage of trading using opposite Amtech Systems and Kemper positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amtech Systems position performs unexpectedly, Kemper 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 Kemper will offset losses from the drop in Kemper's long position.| Amtech Systems vs. Ultra Clean Holdings | Amtech Systems vs. Cohu Inc | Amtech Systems vs. Ichor Holdings | Amtech Systems vs. Entegris |
| Kemper vs. Amtech Systems | Kemper vs. Gold Fields Ltd | Kemper vs. Aegean Airlines SA | Kemper vs. Merck Company |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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