Correlation Between Amtech Systems and Marvell Technology
Can any of the company-specific risk be diversified away by investing in both Amtech Systems and Marvell 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 Marvell 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 Marvell Technology Group, you can compare the effects of market volatilities on Amtech Systems and Marvell 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 Marvell Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amtech Systems and Marvell Technology.
Diversification Opportunities for Amtech Systems and Marvell Technology
-0.71 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Amtech and Marvell is -0.71. Overlapping area represents the amount of risk that can be diversified away by holding Amtech Systems and Marvell Technology Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Marvell 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 Marvell Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Marvell Technology has no effect on the direction of Amtech Systems i.e., Amtech Systems and Marvell Technology go up and down completely randomly.
Pair Corralation between Amtech Systems and Marvell Technology
Given the investment horizon of 90 days Amtech Systems is expected to generate 3.49 times less return on investment than Marvell Technology. But when comparing it to its historical volatility, Amtech Systems is 1.42 times less risky than Marvell Technology. It trades about 0.08 of its potential returns per unit of risk. Marvell Technology Group is currently generating about 0.2 of returns per unit of risk over similar time horizon. If you would invest 8,344 in Marvell Technology Group on August 28, 2024 and sell it today you would earn a total of 880.00 from holding Marvell Technology Group or generate 10.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Amtech Systems vs. Marvell Technology Group
Performance |
| Timeline |
| Amtech Systems |
| Marvell Technology |
Amtech Systems and Marvell Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amtech Systems and Marvell Technology
The main advantage of trading using opposite Amtech Systems and Marvell Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amtech Systems position performs unexpectedly, Marvell 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 Marvell Technology will offset losses from the drop in Marvell 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 |
| Marvell Technology vs. NVIDIA | Marvell Technology vs. Intel | Marvell Technology vs. Taiwan Semiconductor Manufacturing | Marvell Technology vs. Micron Technology |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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