Correlation Between Ichor Holdings and Calix
Can any of the company-specific risk be diversified away by investing in both Ichor Holdings and Calix 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 Ichor Holdings and Calix into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ichor Holdings and Calix Inc, you can compare the effects of market volatilities on Ichor Holdings and Calix 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 Ichor Holdings with a short position of Calix. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ichor Holdings and Calix.
Diversification Opportunities for Ichor Holdings and Calix
-0.47 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Ichor and Calix is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding Ichor Holdings and Calix Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calix Inc and Ichor Holdings 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 Ichor Holdings are associated (or correlated) with Calix. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Calix Inc has no effect on the direction of Ichor Holdings i.e., Ichor Holdings and Calix go up and down completely randomly.
Pair Corralation between Ichor Holdings and Calix
Given the investment horizon of 90 days Ichor Holdings is expected to generate 1.14 times more return on investment than Calix. However, Ichor Holdings is 1.14 times more volatile than Calix Inc. It trades about 0.15 of its potential returns per unit of risk. Calix Inc is currently generating about -0.13 per unit of risk. If you would invest 2,828 in Ichor Holdings on August 31, 2024 and sell it today you would earn a total of 388.00 from holding Ichor Holdings or generate 13.72% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ichor Holdings vs. Calix Inc
Performance |
| Timeline |
| Ichor Holdings |
| Calix Inc |
Ichor Holdings and Calix Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ichor Holdings and Calix
The main advantage of trading using opposite Ichor Holdings and Calix positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ichor Holdings position performs unexpectedly, Calix 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 Calix will offset losses from the drop in Calix's long position.| Ichor Holdings vs. Cohu Inc | Ichor Holdings vs. Entegris | Ichor Holdings vs. Kulicke and Soffa | Ichor Holdings vs. Photronics |
| Calix vs. Nextplat Corp | Calix vs. DatChat Series A | Calix vs. HUMANA INC | Calix vs. Aquagold International |
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 Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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