Correlation Between InTest and Cohu
Can any of the company-specific risk be diversified away by investing in both InTest and Cohu 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 Cohu into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between inTest and Cohu Inc, you can compare the effects of market volatilities on InTest and Cohu 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 Cohu. Check out your portfolio center. Please also check ongoing floating volatility patterns of InTest and Cohu.
Diversification Opportunities for InTest and Cohu
Very good diversification
The 3 months correlation between InTest and Cohu is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding inTest and Cohu Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cohu Inc 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 Cohu. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cohu Inc has no effect on the direction of InTest i.e., InTest and Cohu go up and down completely randomly.
Pair Corralation between InTest and Cohu
Given the investment horizon of 90 days inTest is expected to generate 1.44 times more return on investment than Cohu. However, InTest is 1.44 times more volatile than Cohu Inc. It trades about -0.04 of its potential returns per unit of risk. Cohu Inc is currently generating about -0.35 per unit of risk. If you would invest 950.00 in inTest on November 5, 2024 and sell it today you would lose (35.00) from holding inTest or give up 3.68% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
inTest vs. Cohu Inc
Performance |
| Timeline |
| inTest |
| Cohu Inc |
InTest and Cohu Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with InTest and Cohu
The main advantage of trading using opposite InTest and Cohu positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if InTest position performs unexpectedly, Cohu 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 Cohu will offset losses from the drop in Cohu's long position.| InTest vs. Axcelis Technologies | InTest vs. Lam Research Corp | InTest vs. Photronics | InTest vs. indie Semiconductor |
| Cohu vs. Onto Innovation | Cohu vs. Photronics | Cohu vs. Ultra Clean Holdings | Cohu vs. Axcelis Technologies |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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