Correlation Between International Business and Amtech Systems
Can any of the company-specific risk be diversified away by investing in both International Business 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 International Business and Amtech Systems into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between International Business Machines and Amtech Systems, you can compare the effects of market volatilities on International Business 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 International Business with a short position of Amtech Systems. Check out your portfolio center. Please also check ongoing floating volatility patterns of International Business and Amtech Systems.
Diversification Opportunities for International Business and Amtech Systems
-0.5 | Correlation Coefficient |
Very good diversification
The 3 months correlation between International and Amtech is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding International Business Machine and Amtech Systems in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amtech Systems and International Business 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 International Business Machines 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 International Business i.e., International Business and Amtech Systems go up and down completely randomly.
Pair Corralation between International Business and Amtech Systems
Considering the 90-day investment horizon International Business Machines is expected to generate 0.85 times more return on investment than Amtech Systems. However, International Business Machines is 1.17 times less risky than Amtech Systems. It trades about 0.22 of its potential returns per unit of risk. Amtech Systems is currently generating about 0.08 per unit of risk. If you would invest 21,125 in International Business Machines on August 28, 2024 and sell it today you would earn a total of 1,488 from holding International Business Machines or generate 7.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
International Business Machine vs. Amtech Systems
Performance |
| Timeline |
| International Business |
| Amtech Systems |
International Business and Amtech Systems Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with International Business and Amtech Systems
The main advantage of trading using opposite International Business and Amtech Systems positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if International Business 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.| International Business vs. Data Storage Corp | International Business vs. Usio Inc | International Business vs. ARB IOT Group | International Business vs. FiscalNote Holdings |
| 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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
Other Complementary Tools
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing |