Correlation Between Amtech Systems and Lasertec
Can any of the company-specific risk be diversified away by investing in both Amtech Systems and Lasertec 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 Lasertec into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Amtech Systems and Lasertec, you can compare the effects of market volatilities on Amtech Systems and Lasertec 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 Lasertec. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amtech Systems and Lasertec.
Diversification Opportunities for Amtech Systems and Lasertec
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Amtech and Lasertec is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Amtech Systems and Lasertec in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lasertec 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 Lasertec. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lasertec has no effect on the direction of Amtech Systems i.e., Amtech Systems and Lasertec go up and down completely randomly.
Pair Corralation between Amtech Systems and Lasertec
Given the investment horizon of 90 days Amtech Systems is expected to generate 0.76 times more return on investment than Lasertec. However, Amtech Systems is 1.31 times less risky than Lasertec. It trades about -0.06 of its potential returns per unit of risk. Lasertec is currently generating about -0.18 per unit of risk. If you would invest 596.00 in Amtech Systems on August 24, 2024 and sell it today you would lose (15.00) from holding Amtech Systems or give up 2.52% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Amtech Systems vs. Lasertec
Performance |
| Timeline |
| Amtech Systems |
| Lasertec |
Amtech Systems and Lasertec Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amtech Systems and Lasertec
The main advantage of trading using opposite Amtech Systems and Lasertec positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amtech Systems position performs unexpectedly, Lasertec 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 Lasertec will offset losses from the drop in Lasertec's long position.| Amtech Systems vs. Ultra Clean Holdings | Amtech Systems vs. Cohu Inc | Amtech Systems vs. Ichor Holdings | Amtech Systems vs. Entegris |
| Lasertec vs. Sumco Corp ADR | Lasertec vs. Asm Pacific Technology | Lasertec vs. Disco Corp ADR | Lasertec vs. Tokyo Electron |
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 Stocks Directory module to find actively traded stocks across global markets.
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