Correlation Between Rubicon Technology and Amtech Systems
Can any of the company-specific risk be diversified away by investing in both Rubicon 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 Rubicon 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 Rubicon Technology and Amtech Systems, you can compare the effects of market volatilities on Rubicon 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 Rubicon Technology with a short position of Amtech Systems. Check out your portfolio center. Please also check ongoing floating volatility patterns of Rubicon Technology and Amtech Systems.
Diversification Opportunities for Rubicon Technology and Amtech Systems
0.3 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Rubicon and Amtech is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding Rubicon Technology and Amtech Systems in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amtech Systems and Rubicon 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 Rubicon 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 Rubicon Technology i.e., Rubicon Technology and Amtech Systems go up and down completely randomly.
Pair Corralation between Rubicon Technology and Amtech Systems
If you would invest 157.00 in Rubicon Technology on September 1, 2024 and sell it today you would earn a total of 0.00 from holding Rubicon Technology or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 0.79% |
| Values | Daily Returns |
Rubicon Technology vs. Amtech Systems
Performance |
| Timeline |
| Rubicon Technology |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Amtech Systems |
Rubicon Technology and Amtech Systems Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Rubicon Technology and Amtech Systems
The main advantage of trading using opposite Rubicon Technology and Amtech Systems positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Rubicon 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.| Rubicon Technology vs. Axcelis Technologies | Rubicon Technology vs. inTest | Rubicon Technology vs. Lam Research Corp | Rubicon Technology vs. Photronics |
| Amtech Systems vs. NXP Semiconductors NV | Amtech Systems vs. GSI Technology | Amtech Systems vs. MaxLinear | Amtech Systems vs. Texas Instruments Incorporated |
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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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