Correlation Between Kingstone Companies and Amtech Systems
Can any of the company-specific risk be diversified away by investing in both Kingstone Companies and Amtech Systems 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 Kingstone Companies and Amtech Systems into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kingstone Companies and Amtech Systems, you can compare the effects of market volatilities on Kingstone Companies and Amtech Systems 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 Kingstone Companies with a short position of Amtech Systems. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kingstone Companies and Amtech Systems.
Diversification Opportunities for Kingstone Companies and Amtech Systems
-0.51 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Kingstone and Amtech is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding Kingstone Companies and Amtech Systems in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amtech Systems and Kingstone Companies 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 Kingstone Companies are associated (or correlated) with Amtech Systems. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amtech Systems has no effect on the direction of Kingstone Companies i.e., Kingstone Companies and Amtech Systems go up and down completely randomly.
Pair Corralation between Kingstone Companies and Amtech Systems
Given the investment horizon of 90 days Kingstone Companies is expected to generate 3.09 times more return on investment than Amtech Systems. However, Kingstone Companies is 3.09 times more volatile than Amtech Systems. It trades about 0.41 of its potential returns per unit of risk. Amtech Systems is currently generating about 0.08 per unit of risk. If you would invest 973.00 in Kingstone Companies on August 28, 2024 and sell it today you would earn a total of 529.00 from holding Kingstone Companies or generate 54.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kingstone Companies vs. Amtech Systems
Performance |
| Timeline |
| Kingstone Companies |
| Amtech Systems |
Kingstone Companies and Amtech Systems Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kingstone Companies and Amtech Systems
The main advantage of trading using opposite Kingstone Companies and Amtech Systems positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kingstone Companies position performs unexpectedly, Amtech Systems 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 Amtech Systems will offset losses from the drop in Amtech Systems' long position.| Kingstone Companies vs. HCI Group | Kingstone Companies vs. Universal Insurance Holdings | Kingstone Companies vs. Horace Mann Educators | Kingstone Companies vs. Heritage Insurance Hldgs |
| Amtech Systems vs. Ultra Clean Holdings | Amtech Systems vs. Veeco Instruments | Amtech Systems vs. Cohu Inc | Amtech Systems 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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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