Correlation Between Amtech Systems and Trinseo SA
Can any of the company-specific risk be diversified away by investing in both Amtech Systems and Trinseo SA 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 Trinseo SA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Amtech Systems and Trinseo SA, you can compare the effects of market volatilities on Amtech Systems and Trinseo SA 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 Trinseo SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amtech Systems and Trinseo SA.
Diversification Opportunities for Amtech Systems and Trinseo SA
-0.2 | Correlation Coefficient |
Good diversification
The 3 months correlation between Amtech and Trinseo is -0.2. Overlapping area represents the amount of risk that can be diversified away by holding Amtech Systems and Trinseo SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Trinseo SA 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 Trinseo SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Trinseo SA has no effect on the direction of Amtech Systems i.e., Amtech Systems and Trinseo SA go up and down completely randomly.
Pair Corralation between Amtech Systems and Trinseo SA
Given the investment horizon of 90 days Amtech Systems is expected to under-perform the Trinseo SA. But the stock apears to be less risky and, when comparing its historical volatility, Amtech Systems is 2.91 times less risky than Trinseo SA. The stock trades about -0.06 of its potential returns per unit of risk. The Trinseo SA is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 415.00 in Trinseo SA on August 28, 2024 and sell it today you would lose (36.00) from holding Trinseo SA or give up 8.67% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Amtech Systems vs. Trinseo SA
Performance |
| Timeline |
| Amtech Systems |
| Trinseo SA |
Amtech Systems and Trinseo SA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amtech Systems and Trinseo SA
The main advantage of trading using opposite Amtech Systems and Trinseo SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amtech Systems position performs unexpectedly, Trinseo SA 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 Trinseo SA will offset losses from the drop in Trinseo SA's long position.| Amtech Systems vs. Ultra Clean Holdings | Amtech Systems vs. Veeco Instruments | Amtech Systems vs. Cohu Inc | Amtech Systems vs. Onto Innovation |
| Trinseo SA vs. Quaker Chemical | Trinseo SA vs. Minerals Technologies | Trinseo SA vs. Innospec | Trinseo SA vs. H B Fuller |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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