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
-0.47 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Veeco and Atomera is -0.47. 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 under-perform the Atomera. But the stock apears to be less risky and, when comparing its historical volatility, Veeco Instruments is 4.66 times less risky than Atomera. The stock trades about -0.07 of its potential returns per unit of risk. The Atomera is currently generating about 0.23 of returns per unit of risk over similar time horizon. If you would invest 369.00 in Atomera on October 26, 2024 and sell it today you would earn a total of 702.00 from holding Atomera or generate 190.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very 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. Diodes Incorporated | Veeco Instruments vs. Daqo New Energy | Veeco Instruments vs. Micron Technology | Veeco Instruments vs. MagnaChip Semiconductor |
| 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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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