Correlation Between Amtech Systems and T Mobile
Can any of the company-specific risk be diversified away by investing in both Amtech Systems and T Mobile 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 T Mobile into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Amtech Systems and T Mobile, you can compare the effects of market volatilities on Amtech Systems and T Mobile 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 T Mobile. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amtech Systems and T Mobile.
Diversification Opportunities for Amtech Systems and T Mobile
-0.31 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Amtech and TMUS is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding Amtech Systems and T Mobile in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on T Mobile 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 T Mobile. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of T Mobile has no effect on the direction of Amtech Systems i.e., Amtech Systems and T Mobile go up and down completely randomly.
Pair Corralation between Amtech Systems and T Mobile
Given the investment horizon of 90 days Amtech Systems is expected to under-perform the T Mobile. In addition to that, Amtech Systems is 2.94 times more volatile than T Mobile. It trades about -0.03 of its total potential returns per unit of risk. T Mobile is currently generating about 0.1 per unit of volatility. If you would invest 14,264 in T Mobile on January 13, 2025 and sell it today you would earn a total of 11,603 from holding T Mobile or generate 81.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Amtech Systems vs. T Mobile
Performance |
| Timeline |
| Amtech Systems |
| T Mobile |
Amtech Systems and T Mobile Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amtech Systems and T Mobile
The main advantage of trading using opposite Amtech Systems and T Mobile positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amtech Systems position performs unexpectedly, T Mobile 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 T Mobile will offset losses from the drop in T Mobile's long position.| Amtech Systems vs. Ultra Clean Holdings | Amtech Systems vs. Veeco Instruments | Amtech Systems vs. Cohu Inc | Amtech Systems vs. Onto Innovation |
| T Mobile vs. ATT Inc | T Mobile vs. Comcast Corp | T Mobile vs. Lumen Technologies | T Mobile vs. Verizon Communications |
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 Directory module to find actively traded commodities issued by global exchanges.
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