Correlation Between Sumco Corp and Atomera
Can any of the company-specific risk be diversified away by investing in both Sumco Corp and Atomera 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 Sumco Corp and Atomera into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sumco Corp ADR and Atomera, you can compare the effects of market volatilities on Sumco Corp and Atomera 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 Sumco Corp with a short position of Atomera. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sumco Corp and Atomera.
Diversification Opportunities for Sumco Corp and Atomera
-0.66 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Sumco and Atomera is -0.66. Overlapping area represents the amount of risk that can be diversified away by holding Sumco Corp ADR and Atomera in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Atomera and Sumco Corp 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 Sumco Corp ADR are associated (or correlated) with Atomera. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Atomera has no effect on the direction of Sumco Corp i.e., Sumco Corp and Atomera go up and down completely randomly.
Pair Corralation between Sumco Corp and Atomera
Assuming the 90 days horizon Sumco Corp ADR is expected to under-perform the Atomera. But the pink sheet apears to be less risky and, when comparing its historical volatility, Sumco Corp ADR is 2.18 times less risky than Atomera. The pink sheet trades about -0.04 of its potential returns per unit of risk. The Atomera is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 824.00 in Atomera on October 25, 2024 and sell it today you would earn a total of 248.00 from holding Atomera or generate 30.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sumco Corp ADR vs. Atomera
Performance |
| Timeline |
| Sumco Corp ADR |
| Atomera |
Sumco Corp and Atomera Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sumco Corp and Atomera
The main advantage of trading using opposite Sumco Corp and Atomera positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sumco Corp position performs unexpectedly, Atomera 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 Atomera will offset losses from the drop in Atomera's long position.| Sumco Corp vs. Lasertec | Sumco Corp vs. Asm Pacific Technology | Sumco Corp vs. Disco Corp ADR | Sumco Corp vs. Tokyo Electron |
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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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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