Correlation Between CVD Equipment and Acm Research
Can any of the company-specific risk be diversified away by investing in both CVD Equipment and Acm Research 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 CVD Equipment and Acm Research into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CVD Equipment and Acm Research, you can compare the effects of market volatilities on CVD Equipment and Acm Research 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 CVD Equipment with a short position of Acm Research. Check out your portfolio center. Please also check ongoing floating volatility patterns of CVD Equipment and Acm Research.
Diversification Opportunities for CVD Equipment and Acm Research
-0.66 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between CVD and Acm is -0.66. Overlapping area represents the amount of risk that can be diversified away by holding CVD Equipment and Acm Research in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Acm Research and CVD Equipment 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 CVD Equipment are associated (or correlated) with Acm Research. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Acm Research has no effect on the direction of CVD Equipment i.e., CVD Equipment and Acm Research go up and down completely randomly.
Pair Corralation between CVD Equipment and Acm Research
Considering the 90-day investment horizon CVD Equipment is expected to under-perform the Acm Research. But the stock apears to be less risky and, when comparing its historical volatility, CVD Equipment is 1.07 times less risky than Acm Research. The stock trades about -0.03 of its potential returns per unit of risk. The Acm Research is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 1,316 in Acm Research on November 2, 2024 and sell it today you would earn a total of 738.00 from holding Acm Research or generate 56.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
CVD Equipment vs. Acm Research
Performance |
| Timeline |
| CVD Equipment |
| Acm Research |
CVD Equipment and Acm Research Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CVD Equipment and Acm Research
The main advantage of trading using opposite CVD Equipment and Acm Research positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CVD Equipment position performs unexpectedly, Acm Research 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 Acm Research will offset losses from the drop in Acm Research's long position.| CVD Equipment vs. Standex International | CVD Equipment vs. Intevac | CVD Equipment vs. Thermon Group Holdings | CVD Equipment vs. Enpro Industries |
| Acm Research vs. Axcelis Technologies | Acm Research vs. inTest | Acm Research vs. Lam Research Corp | Acm Research 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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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