Correlation Between Focus Universal and Photronics
Can any of the company-specific risk be diversified away by investing in both Focus Universal and Photronics 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 Focus Universal and Photronics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Focus Universal and Photronics, you can compare the effects of market volatilities on Focus Universal and Photronics 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 Focus Universal with a short position of Photronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Focus Universal and Photronics.
Diversification Opportunities for Focus Universal and Photronics
-0.4 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Focus and Photronics is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding Focus Universal and Photronics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Photronics and Focus Universal 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 Focus Universal are associated (or correlated) with Photronics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Photronics has no effect on the direction of Focus Universal i.e., Focus Universal and Photronics go up and down completely randomly.
Pair Corralation between Focus Universal and Photronics
Given the investment horizon of 90 days Focus Universal is expected to generate 3.12 times less return on investment than Photronics. In addition to that, Focus Universal is 4.02 times more volatile than Photronics. It trades about 0.0 of its total potential returns per unit of risk. Photronics is currently generating about 0.04 per unit of volatility. If you would invest 1,640 in Photronics on November 9, 2024 and sell it today you would earn a total of 649.00 from holding Photronics or generate 39.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Focus Universal vs. Photronics
Performance |
| Timeline |
| Focus Universal |
| Photronics |
Focus Universal and Photronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Focus Universal and Photronics
The main advantage of trading using opposite Focus Universal and Photronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Focus Universal position performs unexpectedly, Photronics 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 Photronics will offset losses from the drop in Photronics' long position.| Focus Universal vs. ESCO Technologies | Focus Universal vs. Genasys | Focus Universal vs. Know Labs | Focus Universal vs. Sono Tek Corp |
| Photronics vs. Aehr Test Systems | Photronics vs. Lam Research Corp | Photronics vs. KLA Tencor | Photronics vs. Kulicke and Soffa |
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
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance |