Correlation Between Amtech Systems and Ultra Clean
Can any of the company-specific risk be diversified away by investing in both Amtech Systems and Ultra Clean 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 Ultra Clean into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Amtech Systems and Ultra Clean Holdings, you can compare the effects of market volatilities on Amtech Systems and Ultra Clean 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 Ultra Clean. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amtech Systems and Ultra Clean.
Diversification Opportunities for Amtech Systems and Ultra Clean
0.02 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Amtech and Ultra is 0.02. Overlapping area represents the amount of risk that can be diversified away by holding Amtech Systems and Ultra Clean Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ultra Clean Holdings 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 Ultra Clean. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ultra Clean Holdings has no effect on the direction of Amtech Systems i.e., Amtech Systems and Ultra Clean go up and down completely randomly.
Pair Corralation between Amtech Systems and Ultra Clean
Given the investment horizon of 90 days Amtech Systems is expected to generate 1.06 times more return on investment than Ultra Clean. However, Amtech Systems is 1.06 times more volatile than Ultra Clean Holdings. It trades about 0.02 of its potential returns per unit of risk. Ultra Clean Holdings is currently generating about -0.02 per unit of risk. If you would invest 575.00 in Amtech Systems on August 24, 2024 and sell it today you would lose (4.00) from holding Amtech Systems or give up 0.7% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Amtech Systems vs. Ultra Clean Holdings
Performance |
| Timeline |
| Amtech Systems |
| Ultra Clean Holdings |
Amtech Systems and Ultra Clean Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amtech Systems and Ultra Clean
The main advantage of trading using opposite Amtech Systems and Ultra Clean positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amtech Systems position performs unexpectedly, Ultra Clean 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 Ultra Clean will offset losses from the drop in Ultra Clean's long position.| Amtech Systems vs. Ultra Clean Holdings | Amtech Systems vs. Veeco Instruments | Amtech Systems vs. Cohu Inc | Amtech Systems vs. Onto Innovation |
| Ultra Clean vs. Amtech Systems | Ultra Clean vs. Veeco Instruments | Ultra Clean vs. Cohu Inc | Ultra Clean vs. Onto Innovation |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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