Correlation Between Lasertec and Ichor Holdings
Can any of the company-specific risk be diversified away by investing in both Lasertec and Ichor Holdings 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 Lasertec and Ichor Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lasertec and Ichor Holdings, you can compare the effects of market volatilities on Lasertec and Ichor Holdings 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 Lasertec with a short position of Ichor Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lasertec and Ichor Holdings.
Diversification Opportunities for Lasertec and Ichor Holdings
-0.09 | Correlation Coefficient |
Good diversification
The 3 months correlation between Lasertec and Ichor is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding Lasertec and Ichor Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ichor Holdings and Lasertec 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 Lasertec are associated (or correlated) with Ichor Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ichor Holdings has no effect on the direction of Lasertec i.e., Lasertec and Ichor Holdings go up and down completely randomly.
Pair Corralation between Lasertec and Ichor Holdings
Assuming the 90 days horizon Lasertec is expected to under-perform the Ichor Holdings. But the pink sheet apears to be less risky and, when comparing its historical volatility, Lasertec is 1.29 times less risky than Ichor Holdings. The pink sheet trades about -0.31 of its potential returns per unit of risk. The Ichor Holdings is currently generating about 0.25 of returns per unit of risk over similar time horizon. If you would invest 2,699 in Ichor Holdings on August 25, 2024 and sell it today you would earn a total of 636.00 from holding Ichor Holdings or generate 23.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lasertec vs. Ichor Holdings
Performance |
| Timeline |
| Lasertec |
| Ichor Holdings |
Lasertec and Ichor Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lasertec and Ichor Holdings
The main advantage of trading using opposite Lasertec and Ichor Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lasertec position performs unexpectedly, Ichor Holdings 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 Ichor Holdings will offset losses from the drop in Ichor Holdings' long position.| Lasertec vs. Sumco Corp ADR | Lasertec vs. Asm Pacific Technology | Lasertec vs. Tokyo Electron | Lasertec vs. Advantest |
| Ichor Holdings vs. Cohu Inc | Ichor Holdings vs. Entegris | Ichor Holdings vs. Veeco Instruments | Ichor Holdings vs. Amtech Systems |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments |