Correlation Between Amtech Systems and KORE Group
Can any of the company-specific risk be diversified away by investing in both Amtech Systems and KORE Group 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 KORE Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Amtech Systems and KORE Group Holdings, you can compare the effects of market volatilities on Amtech Systems and KORE Group 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 KORE Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amtech Systems and KORE Group.
Diversification Opportunities for Amtech Systems and KORE Group
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Amtech and KORE is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Amtech Systems and KORE Group Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KORE Group Holdings 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 KORE Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KORE Group Holdings has no effect on the direction of Amtech Systems i.e., Amtech Systems and KORE Group go up and down completely randomly.
Pair Corralation between Amtech Systems and KORE Group
Given the investment horizon of 90 days Amtech Systems is expected to under-perform the KORE Group. But the stock apears to be less risky and, when comparing its historical volatility, Amtech Systems is 2.16 times less risky than KORE Group. The stock trades about -0.01 of its potential returns per unit of risk. The KORE Group Holdings is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 289.00 in KORE Group Holdings on August 24, 2024 and sell it today you would lose (103.00) from holding KORE Group Holdings or give up 35.64% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.6% |
| Values | Daily Returns |
Amtech Systems vs. KORE Group Holdings
Performance |
| Timeline |
| Amtech Systems |
| KORE Group Holdings |
Amtech Systems and KORE Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amtech Systems and KORE Group
The main advantage of trading using opposite Amtech Systems and KORE Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amtech Systems position performs unexpectedly, KORE Group 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 KORE Group will offset losses from the drop in KORE Group's long position.| Amtech Systems vs. Ultra Clean Holdings | Amtech Systems vs. Cohu Inc | Amtech Systems vs. Ichor Holdings | Amtech Systems vs. Entegris |
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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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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