Correlation Between Advantest Corp and Cohu
Can any of the company-specific risk be diversified away by investing in both Advantest Corp and Cohu 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 Advantest Corp and Cohu into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Advantest Corp DRC and Cohu Inc, you can compare the effects of market volatilities on Advantest Corp and Cohu 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 Advantest Corp with a short position of Cohu. Check out your portfolio center. Please also check ongoing floating volatility patterns of Advantest Corp and Cohu.
Diversification Opportunities for Advantest Corp and Cohu
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Advantest and Cohu is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding Advantest Corp DRC and Cohu Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cohu Inc and Advantest Corp 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 Advantest Corp DRC are associated (or correlated) with Cohu. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cohu Inc has no effect on the direction of Advantest Corp i.e., Advantest Corp and Cohu go up and down completely randomly.
Pair Corralation between Advantest Corp and Cohu
If you would invest 7,581 in Advantest Corp DRC on August 28, 2024 and sell it today you would earn a total of 0.00 from holding Advantest Corp DRC or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 4.55% |
| Values | Daily Returns |
Advantest Corp DRC vs. Cohu Inc
Performance |
| Timeline |
| Advantest Corp DRC |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Cohu Inc |
Advantest Corp and Cohu Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Advantest Corp and Cohu
The main advantage of trading using opposite Advantest Corp and Cohu positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Advantest Corp position performs unexpectedly, Cohu 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 Cohu will offset losses from the drop in Cohu's long position.| Advantest Corp vs. Disco Corp ADR | Advantest Corp vs. Tokyo Electron | Advantest Corp vs. Lasertec | Advantest Corp vs. BE Semiconductor Industries |
| Cohu vs. Onto Innovation | Cohu vs. Photronics | Cohu vs. Ultra Clean Holdings | Cohu vs. Axcelis Technologies |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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