Correlation Between Transphorm Technology and Atomera
Can any of the company-specific risk be diversified away by investing in both Transphorm Technology 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 Transphorm Technology and Atomera into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Transphorm Technology and Atomera, you can compare the effects of market volatilities on Transphorm Technology 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 Transphorm Technology with a short position of Atomera. Check out your portfolio center. Please also check ongoing floating volatility patterns of Transphorm Technology and Atomera.
Diversification Opportunities for Transphorm Technology and Atomera
-0.11 | Correlation Coefficient |
Good diversification
The 3 months correlation between Transphorm and Atomera is -0.11. Overlapping area represents the amount of risk that can be diversified away by holding Transphorm Technology and Atomera in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Atomera and Transphorm 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 Transphorm Technology 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 Transphorm Technology i.e., Transphorm Technology and Atomera go up and down completely randomly.
Pair Corralation between Transphorm Technology and Atomera
If you would invest 254.00 in Atomera on September 12, 2024 and sell it today you would earn a total of 480.00 from holding Atomera or generate 188.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 1.56% |
| Values | Daily Returns |
Transphorm Technology vs. Atomera
Performance |
| Timeline |
| Transphorm Technology |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Atomera |
Transphorm Technology and Atomera Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Transphorm Technology and Atomera
The main advantage of trading using opposite Transphorm Technology and Atomera positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Transphorm Technology 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.| Transphorm Technology vs. Sumco Corp ADR | Transphorm Technology vs. Lasertec | Transphorm Technology vs. Asm Pacific Technology | Transphorm Technology vs. Disco Corp ADR |
| Atomera vs. Axcelis Technologies | Atomera vs. inTest | Atomera vs. Lam Research Corp | Atomera vs. Photronics |
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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