Correlation Between Intevac and Ametek
Can any of the company-specific risk be diversified away by investing in both Intevac and Ametek 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 Intevac and Ametek into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Intevac and Ametek Inc, you can compare the effects of market volatilities on Intevac and Ametek 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 Intevac with a short position of Ametek. Check out your portfolio center. Please also check ongoing floating volatility patterns of Intevac and Ametek.
Diversification Opportunities for Intevac and Ametek
Pay attention - limited upside
The 3 months correlation between Intevac and Ametek is -0.81. Overlapping area represents the amount of risk that can be diversified away by holding Intevac and Ametek Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ametek Inc and Intevac 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 Intevac are associated (or correlated) with Ametek. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ametek Inc has no effect on the direction of Intevac i.e., Intevac and Ametek go up and down completely randomly.
Pair Corralation between Intevac and Ametek
Given the investment horizon of 90 days Intevac is expected to under-perform the Ametek. In addition to that, Intevac is 1.89 times more volatile than Ametek Inc. It trades about -0.06 of its total potential returns per unit of risk. Ametek Inc is currently generating about 0.04 per unit of volatility. If you would invest 17,931 in Ametek Inc on August 27, 2024 and sell it today you would earn a total of 1,807 from holding Ametek Inc or generate 10.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Intevac vs. Ametek Inc
Performance |
| Timeline |
| Intevac |
| Ametek Inc |
Intevac and Ametek Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Intevac and Ametek
The main advantage of trading using opposite Intevac and Ametek positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Intevac position performs unexpectedly, Ametek 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 Ametek will offset losses from the drop in Ametek's long position.| Intevac vs. D Wave Quantum | Intevac vs. Rigetti Computing | Intevac vs. Cricut Inc | Intevac vs. Quantum Computing |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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