Correlation Between Amtech Systems and Onto Innovation
Can any of the company-specific risk be diversified away by investing in both Amtech Systems and Onto Innovation 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 Onto Innovation into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Amtech Systems and Onto Innovation, you can compare the effects of market volatilities on Amtech Systems and Onto Innovation 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 Onto Innovation. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amtech Systems and Onto Innovation.
Diversification Opportunities for Amtech Systems and Onto Innovation
0.32 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Amtech and Onto is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding Amtech Systems and Onto Innovation in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Onto Innovation 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 Onto Innovation. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Onto Innovation has no effect on the direction of Amtech Systems i.e., Amtech Systems and Onto Innovation go up and down completely randomly.
Pair Corralation between Amtech Systems and Onto Innovation
Given the investment horizon of 90 days Amtech Systems is expected to under-perform the Onto Innovation. In addition to that, Amtech Systems is 1.21 times more volatile than Onto Innovation. It trades about -0.02 of its total potential returns per unit of risk. Onto Innovation is currently generating about 0.07 per unit of volatility. If you would invest 8,257 in Onto Innovation on August 27, 2024 and sell it today you would earn a total of 8,372 from holding Onto Innovation or generate 101.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Amtech Systems vs. Onto Innovation
Performance |
| Timeline |
| Amtech Systems |
| Onto Innovation |
Amtech Systems and Onto Innovation Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amtech Systems and Onto Innovation
The main advantage of trading using opposite Amtech Systems and Onto Innovation positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amtech Systems position performs unexpectedly, Onto Innovation 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 Onto Innovation will offset losses from the drop in Onto Innovation's long position.| Amtech Systems vs. Ultra Clean Holdings | Amtech Systems vs. Veeco Instruments | Amtech Systems vs. Cohu Inc | Amtech Systems vs. Onto Innovation |
| Onto Innovation vs. Camtek | Onto Innovation vs. Amtech Systems | Onto Innovation vs. Veeco Instruments | Onto Innovation vs. Ichor Holdings |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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