Correlation Between Amtech Systems and Liberty Global
Can any of the company-specific risk be diversified away by investing in both Amtech Systems and Liberty Global 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 Liberty Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Amtech Systems and Liberty Global PLC, you can compare the effects of market volatilities on Amtech Systems and Liberty Global 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 Liberty Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amtech Systems and Liberty Global.
Diversification Opportunities for Amtech Systems and Liberty Global
-0.42 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Amtech and Liberty is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding Amtech Systems and Liberty Global PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Liberty Global PLC 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 Liberty Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Liberty Global PLC has no effect on the direction of Amtech Systems i.e., Amtech Systems and Liberty Global go up and down completely randomly.
Pair Corralation between Amtech Systems and Liberty Global
Given the investment horizon of 90 days Amtech Systems is expected to under-perform the Liberty Global. In addition to that, Amtech Systems is 1.96 times more volatile than Liberty Global PLC. It trades about 0.0 of its total potential returns per unit of risk. Liberty Global PLC is currently generating about 0.04 per unit of volatility. If you would invest 976.00 in Liberty Global PLC on August 28, 2024 and sell it today you would earn a total of 378.00 from holding Liberty Global PLC or generate 38.73% 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. Liberty Global PLC
Performance |
| Timeline |
| Amtech Systems |
| Liberty Global PLC |
Amtech Systems and Liberty Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amtech Systems and Liberty Global
The main advantage of trading using opposite Amtech Systems and Liberty Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amtech Systems position performs unexpectedly, Liberty Global 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 Liberty Global will offset losses from the drop in Liberty Global's long position.| Amtech Systems vs. Ultra Clean Holdings | Amtech Systems vs. Veeco Instruments | Amtech Systems vs. Cohu Inc | Amtech Systems vs. Onto Innovation |
| Liberty Global vs. Liberty Global PLC | Liberty Global vs. Liberty Latin America | Liberty Global vs. Liberty Latin America | Liberty Global vs. Liberty Broadband Srs |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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