Correlation Between Cohu and Amtech Systems
Can any of the company-specific risk be diversified away by investing in both Cohu and Amtech Systems 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 Cohu and Amtech Systems into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cohu Inc and Amtech Systems, you can compare the effects of market volatilities on Cohu and Amtech Systems 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 Cohu with a short position of Amtech Systems. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cohu and Amtech Systems.
Diversification Opportunities for Cohu and Amtech Systems
-0.16 | Correlation Coefficient |
Good diversification
The 3 months correlation between Cohu and Amtech is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding Cohu Inc and Amtech Systems in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amtech Systems and Cohu 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 Cohu Inc are associated (or correlated) with Amtech Systems. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amtech Systems has no effect on the direction of Cohu i.e., Cohu and Amtech Systems go up and down completely randomly.
Pair Corralation between Cohu and Amtech Systems
Given the investment horizon of 90 days Cohu Inc is expected to under-perform the Amtech Systems. But the stock apears to be less risky and, when comparing its historical volatility, Cohu Inc is 1.25 times less risky than Amtech Systems. The stock trades about -0.04 of its potential returns per unit of risk. The Amtech Systems is currently generating about 0.02 of returns per unit of risk over similar time horizon. 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 Against |
| Strength | Insignificant |
| Accuracy | 99.21% |
| Values | Daily Returns |
Cohu Inc vs. Amtech Systems
Performance |
| Timeline |
| Cohu Inc |
| Amtech Systems |
Cohu and Amtech Systems Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cohu and Amtech Systems
The main advantage of trading using opposite Cohu and Amtech Systems positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cohu position performs unexpectedly, Amtech Systems 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 Amtech Systems will offset losses from the drop in Amtech Systems' long position.| Cohu vs. Onto Innovation | Cohu vs. Photronics | Cohu vs. Ultra Clean Holdings | Cohu vs. Axcelis Technologies |
| Amtech Systems vs. Ultra Clean Holdings | Amtech Systems vs. Veeco Instruments | Amtech Systems vs. Cohu Inc | Amtech Systems 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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
Other Complementary Tools
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Stocks Directory Find actively traded stocks across global markets | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators |