Correlation Between Micron Technology and Amtech Systems
Can any of the company-specific risk be diversified away by investing in both Micron Technology 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 Micron Technology and Amtech Systems into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Micron Technology and Amtech Systems, you can compare the effects of market volatilities on Micron Technology 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 Micron Technology with a short position of Amtech Systems. Check out your portfolio center. Please also check ongoing floating volatility patterns of Micron Technology and Amtech Systems.
Diversification Opportunities for Micron Technology and Amtech Systems
0.18 | Correlation Coefficient |
Average diversification
The 3 months correlation between Micron and Amtech is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding Micron Technology and Amtech Systems in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amtech Systems and Micron Technology 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 Micron Technology 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 Micron Technology i.e., Micron Technology and Amtech Systems go up and down completely randomly.
Pair Corralation between Micron Technology and Amtech Systems
Allowing for the 90-day total investment horizon Micron Technology is expected to generate 0.82 times more return on investment than Amtech Systems. However, Micron Technology is 1.22 times less risky than Amtech Systems. It trades about 0.04 of its potential returns per unit of risk. Amtech Systems is currently generating about -0.02 per unit of risk. If you would invest 5,906 in Micron Technology on November 1, 2024 and sell it today you would earn a total of 2,995 from holding Micron Technology or generate 50.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 99.8% |
| Values | Daily Returns |
Micron Technology vs. Amtech Systems
Performance |
| Timeline |
| Micron Technology |
| Amtech Systems |
Micron Technology and Amtech Systems Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Micron Technology and Amtech Systems
The main advantage of trading using opposite Micron Technology and Amtech Systems positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Micron Technology 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.| Micron Technology vs. NVIDIA | Micron Technology vs. Intel | Micron Technology vs. Taiwan Semiconductor Manufacturing | Micron Technology vs. Marvell Technology Group |
| Amtech Systems vs. Diodes Incorporated | Amtech Systems vs. Daqo New Energy | Amtech Systems vs. Micron Technology | Amtech Systems vs. MagnaChip Semiconductor |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
Other Complementary Tools
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Commodity Directory Find actively traded commodities issued by global exchanges |