Correlation Between Veeco Instruments and Alpha
Can any of the company-specific risk be diversified away by investing in both Veeco Instruments and Alpha 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 Veeco Instruments and Alpha into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Veeco Instruments and Alpha and Omega, you can compare the effects of market volatilities on Veeco Instruments and Alpha 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 Veeco Instruments with a short position of Alpha. Check out your portfolio center. Please also check ongoing floating volatility patterns of Veeco Instruments and Alpha.
Diversification Opportunities for Veeco Instruments and Alpha
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Veeco and Alpha is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding Veeco Instruments and Alpha and Omega in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Alpha and Omega and Veeco Instruments 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 Veeco Instruments are associated (or correlated) with Alpha. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Alpha and Omega has no effect on the direction of Veeco Instruments i.e., Veeco Instruments and Alpha go up and down completely randomly.
Pair Corralation between Veeco Instruments and Alpha
Given the investment horizon of 90 days Veeco Instruments is expected to generate 0.64 times more return on investment than Alpha. However, Veeco Instruments is 1.57 times less risky than Alpha. It trades about 0.04 of its potential returns per unit of risk. Alpha and Omega is currently generating about 0.02 per unit of risk. If you would invest 1,906 in Veeco Instruments on August 30, 2024 and sell it today you would earn a total of 857.00 from holding Veeco Instruments or generate 44.96% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.8% |
| Values | Daily Returns |
Veeco Instruments vs. Alpha and Omega
Performance |
| Timeline |
| Veeco Instruments |
| Alpha and Omega |
Veeco Instruments and Alpha Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Veeco Instruments and Alpha
The main advantage of trading using opposite Veeco Instruments and Alpha positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Veeco Instruments position performs unexpectedly, Alpha 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 Alpha will offset losses from the drop in Alpha's long position.| Veeco Instruments vs. NVE Corporation | Veeco Instruments vs. Photronics | Veeco Instruments vs. Kulicke and Soffa | Veeco Instruments vs. Alvarium Tiedemann Holdings |
| Alpha vs. ABIVAX Socit Anonyme | Alpha vs. Morningstar Unconstrained Allocation | Alpha vs. SPACE | Alpha vs. Knife River |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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