Correlation Between Amtech Systems and Pfizer
Can any of the company-specific risk be diversified away by investing in both Amtech Systems and Pfizer 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 Pfizer into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Amtech Systems and Pfizer Inc, you can compare the effects of market volatilities on Amtech Systems and Pfizer 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 Pfizer. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amtech Systems and Pfizer.
Diversification Opportunities for Amtech Systems and Pfizer
0.39 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Amtech and Pfizer is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding Amtech Systems and Pfizer Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pfizer Inc 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 Pfizer. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pfizer Inc has no effect on the direction of Amtech Systems i.e., Amtech Systems and Pfizer go up and down completely randomly.
Pair Corralation between Amtech Systems and Pfizer
Given the investment horizon of 90 days Amtech Systems is expected to generate 1.05 times more return on investment than Pfizer. However, Amtech Systems is 1.05 times more volatile than Pfizer Inc. It trades about 0.08 of its potential returns per unit of risk. Pfizer Inc is currently generating about -0.23 per unit of risk. If you would invest 574.00 in Amtech Systems on August 28, 2024 and sell it today you would earn a total of 16.00 from holding Amtech Systems or generate 2.79% 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. Pfizer Inc
Performance |
| Timeline |
| Amtech Systems |
| Pfizer Inc |
Amtech Systems and Pfizer Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amtech Systems and Pfizer
The main advantage of trading using opposite Amtech Systems and Pfizer positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amtech Systems position performs unexpectedly, Pfizer 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 Pfizer will offset losses from the drop in Pfizer's long position.| Amtech Systems vs. Ultra Clean Holdings | Amtech Systems vs. Veeco Instruments | Amtech Systems vs. Cohu Inc | Amtech Systems vs. Onto Innovation |
| Pfizer vs. Capricor Therapeutics | Pfizer vs. Soleno Therapeutics | Pfizer vs. Bio Path Holdings | Pfizer vs. Moleculin Biotech |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
Other Complementary Tools
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing |