Correlation Between Atomera and Ichor Holdings
Can any of the company-specific risk be diversified away by investing in both Atomera and Ichor Holdings 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 Atomera and Ichor Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Atomera and Ichor Holdings, you can compare the effects of market volatilities on Atomera and Ichor Holdings 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 Atomera with a short position of Ichor Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Atomera and Ichor Holdings.
Diversification Opportunities for Atomera and Ichor Holdings
0.58 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Atomera and Ichor is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding Atomera and Ichor Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ichor Holdings and Atomera 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 Atomera are associated (or correlated) with Ichor Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ichor Holdings has no effect on the direction of Atomera i.e., Atomera and Ichor Holdings go up and down completely randomly.
Pair Corralation between Atomera and Ichor Holdings
Given the investment horizon of 90 days Atomera is expected to generate 1.46 times more return on investment than Ichor Holdings. However, Atomera is 1.46 times more volatile than Ichor Holdings. It trades about 0.25 of its potential returns per unit of risk. Ichor Holdings is currently generating about 0.15 per unit of risk. If you would invest 427.00 in Atomera on August 31, 2024 and sell it today you would earn a total of 157.00 from holding Atomera or generate 36.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Atomera vs. Ichor Holdings
Performance |
| Timeline |
| Atomera |
| Ichor Holdings |
Atomera and Ichor Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Atomera and Ichor Holdings
The main advantage of trading using opposite Atomera and Ichor Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Atomera position performs unexpectedly, Ichor Holdings 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 Ichor Holdings will offset losses from the drop in Ichor Holdings' long position.| Atomera vs. Axcelis Technologies | Atomera vs. inTest | Atomera vs. Lam Research Corp | Atomera vs. Photronics |
| Ichor Holdings vs. Cohu Inc | Ichor Holdings vs. Entegris | Ichor Holdings vs. Kulicke and Soffa | Ichor Holdings vs. Photronics |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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