Correlation Between InTest and Acm Research
Can any of the company-specific risk be diversified away by investing in both InTest and Acm Research 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 InTest and Acm Research into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between inTest and Acm Research, you can compare the effects of market volatilities on InTest and Acm Research 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 InTest with a short position of Acm Research. Check out your portfolio center. Please also check ongoing floating volatility patterns of InTest and Acm Research.
Diversification Opportunities for InTest and Acm Research
0.38 | Correlation Coefficient |
Weak diversification
The 3 months correlation between InTest and Acm is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding inTest and Acm Research in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Acm Research and InTest 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 inTest are associated (or correlated) with Acm Research. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Acm Research has no effect on the direction of InTest i.e., InTest and Acm Research go up and down completely randomly.
Pair Corralation between InTest and Acm Research
Given the investment horizon of 90 days inTest is expected to generate 1.2 times more return on investment than Acm Research. However, InTest is 1.2 times more volatile than Acm Research. It trades about 0.1 of its potential returns per unit of risk. Acm Research is currently generating about -0.18 per unit of risk. If you would invest 738.00 in inTest on August 31, 2024 and sell it today you would earn a total of 56.00 from holding inTest or generate 7.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
inTest vs. Acm Research
Performance |
| Timeline |
| inTest |
| Acm Research |
InTest and Acm Research Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with InTest and Acm Research
The main advantage of trading using opposite InTest and Acm Research positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if InTest position performs unexpectedly, Acm Research 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 Acm Research will offset losses from the drop in Acm Research's long position.| InTest vs. Axcelis Technologies | InTest vs. Lam Research Corp | InTest vs. Photronics | InTest vs. indie Semiconductor |
| Acm Research vs. NVE Corporation | Acm Research vs. Photronics | Acm Research vs. Kulicke and Soffa | Acm Research vs. Alvarium Tiedemann Holdings |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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