Correlation Between Veeco Instruments and Atomera
Can any of the company-specific risk be diversified away by investing in both Veeco Instruments 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 Veeco Instruments and Atomera into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Veeco Instruments and Atomera, you can compare the effects of market volatilities on Veeco Instruments 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 Veeco Instruments with a short position of Atomera. Check out your portfolio center. Please also check ongoing floating volatility patterns of Veeco Instruments and Atomera.
Diversification Opportunities for Veeco Instruments and Atomera
-0.67 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Veeco and Atomera is -0.67. Overlapping area represents the amount of risk that can be diversified away by holding Veeco Instruments and Atomera in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Atomera 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 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 Veeco Instruments i.e., Veeco Instruments and Atomera go up and down completely randomly.
Pair Corralation between Veeco Instruments and Atomera
Given the investment horizon of 90 days Veeco Instruments is expected to generate 0.47 times more return on investment than Atomera. However, Veeco Instruments is 2.14 times less risky than Atomera. It trades about 0.04 of its potential returns per unit of risk. Atomera is currently generating about 0.01 per unit of risk. If you would invest 1,963 in Veeco Instruments on August 24, 2024 and sell it today you would earn a total of 777.00 from holding Veeco Instruments or generate 39.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Veeco Instruments vs. Atomera
Performance |
| Timeline |
| Veeco Instruments |
| Atomera |
Veeco Instruments and Atomera Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Veeco Instruments and Atomera
The main advantage of trading using opposite Veeco Instruments and Atomera positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Veeco Instruments 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.| Veeco Instruments vs. Ultra Clean Holdings | Veeco Instruments vs. Cohu Inc | Veeco Instruments vs. Ichor Holdings | Veeco Instruments vs. Entegris |
| 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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