Correlation Between Veeco Instruments and Calix
Can any of the company-specific risk be diversified away by investing in both Veeco Instruments and Calix 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 Calix into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Veeco Instruments and Calix Inc, you can compare the effects of market volatilities on Veeco Instruments and Calix 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 Calix. Check out your portfolio center. Please also check ongoing floating volatility patterns of Veeco Instruments and Calix.
Diversification Opportunities for Veeco Instruments and Calix
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Veeco and Calix is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Veeco Instruments and Calix Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calix Inc 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 Calix. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Calix Inc has no effect on the direction of Veeco Instruments i.e., Veeco Instruments and Calix go up and down completely randomly.
Pair Corralation between Veeco Instruments and Calix
Given the investment horizon of 90 days Veeco Instruments is expected to generate 0.55 times more return on investment than Calix. However, Veeco Instruments is 1.83 times less risky than Calix. It trades about -0.17 of its potential returns per unit of risk. Calix Inc is currently generating about -0.13 per unit of risk. If you would invest 2,997 in Veeco Instruments on August 31, 2024 and sell it today you would lose (234.00) from holding Veeco Instruments or give up 7.81% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Veeco Instruments vs. Calix Inc
Performance |
| Timeline |
| Veeco Instruments |
| Calix Inc |
Veeco Instruments and Calix Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Veeco Instruments and Calix
The main advantage of trading using opposite Veeco Instruments and Calix positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Veeco Instruments position performs unexpectedly, Calix 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 Calix will offset losses from the drop in Calix's long position.| Veeco Instruments vs. NVE Corporation | Veeco Instruments vs. Photronics | Veeco Instruments vs. Kulicke and Soffa | Veeco Instruments vs. Alvarium Tiedemann Holdings |
| Calix vs. Nextplat Corp | Calix vs. DatChat Series A | Calix vs. HUMANA INC | Calix vs. Aquagold International |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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