Correlation Between Entegris and Amtech Systems
Can any of the company-specific risk be diversified away by investing in both Entegris 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 Entegris and Amtech Systems into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Entegris and Amtech Systems, you can compare the effects of market volatilities on Entegris 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 Entegris with a short position of Amtech Systems. Check out your portfolio center. Please also check ongoing floating volatility patterns of Entegris and Amtech Systems.
Diversification Opportunities for Entegris and Amtech Systems
0.23 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Entegris and Amtech is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding Entegris and Amtech Systems in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amtech Systems and Entegris 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 Entegris 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 Entegris i.e., Entegris and Amtech Systems go up and down completely randomly.
Pair Corralation between Entegris and Amtech Systems
Given the investment horizon of 90 days Entegris is expected to generate 1.12 times more return on investment than Amtech Systems. However, Entegris is 1.12 times more volatile than Amtech Systems. It trades about 0.25 of its potential returns per unit of risk. Amtech Systems is currently generating about -0.25 per unit of risk. If you would invest 9,791 in Entegris on October 20, 2024 and sell it today you would earn a total of 847.00 from holding Entegris or generate 8.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.0% |
| Values | Daily Returns |
Entegris vs. Amtech Systems
Performance |
| Timeline |
| Entegris |
| Amtech Systems |
Entegris and Amtech Systems Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Entegris and Amtech Systems
The main advantage of trading using opposite Entegris and Amtech Systems positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Entegris 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.| Entegris vs. Teradyne | Entegris vs. Ichor Holdings | Entegris vs. Amtech Systems | Entegris vs. Veeco Instruments |
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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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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