Correlation Between Amtech Systems and Rubicon Technology
Can any of the company-specific risk be diversified away by investing in both Amtech Systems and Rubicon 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 Rubicon 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 Rubicon Technology, you can compare the effects of market volatilities on Amtech Systems and Rubicon 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 Rubicon Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amtech Systems and Rubicon Technology.
Diversification Opportunities for Amtech Systems and Rubicon Technology
0.3 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Amtech and Rubicon is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding Amtech Systems and Rubicon Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Rubicon 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 Rubicon Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Rubicon Technology has no effect on the direction of Amtech Systems i.e., Amtech Systems and Rubicon Technology go up and down completely randomly.
Pair Corralation between Amtech Systems and Rubicon Technology
If you would invest 556.00 in Amtech Systems on September 1, 2024 and sell it today you would earn a total of 8.00 from holding Amtech Systems or generate 1.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 4.76% |
| Values | Daily Returns |
Amtech Systems vs. Rubicon Technology
Performance |
| Timeline |
| Amtech Systems |
| Rubicon Technology |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Amtech Systems and Rubicon Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amtech Systems and Rubicon Technology
The main advantage of trading using opposite Amtech Systems and Rubicon Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amtech Systems position performs unexpectedly, Rubicon 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 Rubicon Technology will offset losses from the drop in Rubicon Technology's long position.| Amtech Systems vs. NXP Semiconductors NV | Amtech Systems vs. GSI Technology | Amtech Systems vs. MaxLinear | Amtech Systems vs. Texas Instruments Incorporated |
| Rubicon Technology vs. Axcelis Technologies | Rubicon Technology vs. inTest | Rubicon Technology vs. Lam Research Corp | Rubicon Technology vs. Photronics |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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