Correlation Between Veeco Instruments and Amtech Systems
Can any of the company-specific risk be diversified away by investing in both Veeco Instruments 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 Veeco Instruments and Amtech Systems into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Veeco Instruments and Amtech Systems, you can compare the effects of market volatilities on Veeco Instruments 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 Veeco Instruments with a short position of Amtech Systems. Check out your portfolio center. Please also check ongoing floating volatility patterns of Veeco Instruments and Amtech Systems.
Diversification Opportunities for Veeco Instruments and Amtech Systems
0.51 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Veeco and Amtech is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding Veeco Instruments and Amtech Systems in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amtech Systems 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 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 Veeco Instruments i.e., Veeco Instruments and Amtech Systems go up and down completely randomly.
Pair Corralation between Veeco Instruments and Amtech Systems
Given the investment horizon of 90 days Veeco Instruments is expected to under-perform the Amtech Systems. In addition to that, Veeco Instruments is 1.02 times more volatile than Amtech Systems. It trades about -0.13 of its total potential returns per unit of risk. Amtech Systems is currently generating about -0.07 per unit of volatility. If you would invest 593.00 in Amtech Systems on October 31, 2024 and sell it today you would lose (83.00) from holding Amtech Systems or give up 14.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Veeco Instruments vs. Amtech Systems
Performance |
| Timeline |
| Veeco Instruments |
| Amtech Systems |
Veeco Instruments and Amtech Systems Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Veeco Instruments and Amtech Systems
The main advantage of trading using opposite Veeco Instruments and Amtech Systems positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Veeco Instruments 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.| Veeco Instruments vs. NVE Corporation | Veeco Instruments vs. Photronics | Veeco Instruments vs. Kulicke and Soffa | Veeco Instruments vs. Alvarium Tiedemann Holdings |
| 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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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