Correlation Between Indie Semiconductor and Atomera
Can any of the company-specific risk be diversified away by investing in both Indie Semiconductor and Atomera 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 Indie Semiconductor and Atomera into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between indie Semiconductor and Atomera, you can compare the effects of market volatilities on Indie Semiconductor and Atomera 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 Indie Semiconductor with a short position of Atomera. Check out your portfolio center. Please also check ongoing floating volatility patterns of Indie Semiconductor and Atomera.
Diversification Opportunities for Indie Semiconductor and Atomera
0.18 | Correlation Coefficient |
Average diversification
The 3 months correlation between Indie and Atomera is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding indie Semiconductor and Atomera in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Atomera and Indie Semiconductor 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 indie Semiconductor are associated (or correlated) with Atomera. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Atomera has no effect on the direction of Indie Semiconductor i.e., Indie Semiconductor and Atomera go up and down completely randomly.
Pair Corralation between Indie Semiconductor and Atomera
Given the investment horizon of 90 days indie Semiconductor is expected to generate 0.32 times more return on investment than Atomera. However, indie Semiconductor is 3.12 times less risky than Atomera. It trades about -0.16 of its potential returns per unit of risk. Atomera is currently generating about -0.21 per unit of risk. If you would invest 466.00 in indie Semiconductor on November 5, 2024 and sell it today you would lose (56.00) from holding indie Semiconductor or give up 12.02% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
indie Semiconductor vs. Atomera
Performance |
| Timeline |
| indie Semiconductor |
| Atomera |
Indie Semiconductor and Atomera Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Indie Semiconductor and Atomera
The main advantage of trading using opposite Indie Semiconductor and Atomera positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Indie Semiconductor position performs unexpectedly, Atomera 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 Atomera will offset losses from the drop in Atomera's long position.| Indie Semiconductor vs. Axcelis Technologies | Indie Semiconductor vs. inTest | Indie Semiconductor vs. Lam Research Corp | Indie Semiconductor vs. Photronics |
| Atomera vs. Axcelis Technologies | Atomera vs. inTest | Atomera vs. Lam Research Corp | Atomera 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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
Other Complementary Tools
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals |