Correlation Between InTest and Ultra Clean
Can any of the company-specific risk be diversified away by investing in both InTest and Ultra Clean 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 Ultra Clean into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between inTest and Ultra Clean Holdings, you can compare the effects of market volatilities on InTest and Ultra Clean 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 Ultra Clean. Check out your portfolio center. Please also check ongoing floating volatility patterns of InTest and Ultra Clean.
Diversification Opportunities for InTest and Ultra Clean
0.31 | Correlation Coefficient |
Weak diversification
The 3 months correlation between InTest and Ultra is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding inTest and Ultra Clean Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ultra Clean Holdings 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 Ultra Clean. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ultra Clean Holdings has no effect on the direction of InTest i.e., InTest and Ultra Clean go up and down completely randomly.
Pair Corralation between InTest and Ultra Clean
Given the investment horizon of 90 days inTest is expected to under-perform the Ultra Clean. In addition to that, InTest is 1.18 times more volatile than Ultra Clean Holdings. It trades about -0.03 of its total potential returns per unit of risk. Ultra Clean Holdings is currently generating about -0.02 per unit of volatility. If you would invest 4,440 in Ultra Clean Holdings on August 24, 2024 and sell it today you would lose (720.00) from holding Ultra Clean Holdings or give up 16.22% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.21% |
| Values | Daily Returns |
inTest vs. Ultra Clean Holdings
Performance |
| Timeline |
| inTest |
| Ultra Clean Holdings |
InTest and Ultra Clean Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with InTest and Ultra Clean
The main advantage of trading using opposite InTest and Ultra Clean positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if InTest position performs unexpectedly, Ultra Clean 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 Ultra Clean will offset losses from the drop in Ultra Clean's long position.| InTest vs. Lam Research Corp | InTest vs. KLA Tencor | InTest vs. Kulicke and Soffa | InTest vs. Axcelis Technologies |
| Ultra Clean vs. Amtech Systems | Ultra Clean vs. Veeco Instruments | Ultra Clean vs. Cohu Inc | Ultra Clean 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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