Correlation Between Amtech Systems and Yum China
Can any of the company-specific risk be diversified away by investing in both Amtech Systems and Yum China 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 Yum China into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Amtech Systems and Yum China Holdings, you can compare the effects of market volatilities on Amtech Systems and Yum China 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 Yum China. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amtech Systems and Yum China.
Diversification Opportunities for Amtech Systems and Yum China
-0.84 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Amtech and Yum is -0.84. Overlapping area represents the amount of risk that can be diversified away by holding Amtech Systems and Yum China Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yum China 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 Yum China. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Yum China Holdings has no effect on the direction of Amtech Systems i.e., Amtech Systems and Yum China go up and down completely randomly.
Pair Corralation between Amtech Systems and Yum China
Given the investment horizon of 90 days Amtech Systems is expected to under-perform the Yum China. In addition to that, Amtech Systems is 1.66 times more volatile than Yum China Holdings. It trades about 0.0 of its total potential returns per unit of risk. Yum China Holdings is currently generating about 0.0 per unit of volatility. If you would invest 5,422 in Yum China Holdings on August 24, 2024 and sell it today you would lose (715.00) from holding Yum China Holdings or give up 13.19% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Amtech Systems vs. Yum China Holdings
Performance |
| Timeline |
| Amtech Systems |
| Yum China Holdings |
Amtech Systems and Yum China Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amtech Systems and Yum China
The main advantage of trading using opposite Amtech Systems and Yum China positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amtech Systems position performs unexpectedly, Yum China 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 Yum China will offset losses from the drop in Yum China's long position.| Amtech Systems vs. Ultra Clean Holdings | Amtech Systems vs. Cohu Inc | Amtech Systems vs. Ichor Holdings | Amtech Systems vs. Entegris |
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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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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