Correlation Between Amtech Systems and Astera Labs,

Can any of the company-specific risk be diversified away by investing in both Amtech Systems and Astera Labs, 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 Amtech Systems and Astera Labs, into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Amtech Systems and Astera Labs, Common, you can compare the effects of market volatilities on Amtech Systems and Astera Labs, 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 Amtech Systems with a short position of Astera Labs,. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amtech Systems and Astera Labs,.

Diversification Opportunities for Amtech Systems and Astera Labs,

-0.75

Correlation Coefficient

Amtech Systems  Astera Labs,

Pay attention - limited upside

The 3 months correlation between Amtech and Astera is -0.75. Overlapping area represents the amount of risk that can be diversified away by holding Amtech Systems and Astera Labs, Common in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Astera Labs, Common and Amtech Systems 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 Amtech Systems are associated (or correlated) with Astera Labs,. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Astera Labs, Common has no effect on the direction of Amtech Systems i.e., Amtech Systems and Astera Labs, go up and down completely randomly.

Pair Corralation between Amtech Systems and Astera Labs,

Given the investment horizon of 90 days Amtech Systems is expected to under-perform the Astera Labs,. But the stock apears to be less risky and, when comparing its historical volatility, Amtech Systems is 1.56 times less risky than Astera Labs,. The stock trades about 0.0 of its potential returns per unit of risk. The Astera Labs, Common is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest  6,203  in Astera Labs, Common on August 25, 2024 and sell it today you would earn a total of  4,025  from holding Astera Labs, Common or generate 64.89% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	35.08%
Values	Daily Returns

Amtech Systems  vs.  Astera Labs, Common

Amtech Systems

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Amtech Systems has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest weak performance, the Stock's basic indicators remain stable and the newest uproar on Wall Street may also be a sign of mid-term gains for the firm private investors.

Astera Labs, Common

Risk-Adjusted Performance

18 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Astera Labs, Common are ranked lower than 18 (%) of all global equities and portfolios over the last 90 days. Despite somewhat uncertain basic indicators, Astera Labs, sustained solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Amtech Systems and Astera Labs,

The main advantage of trading using opposite Amtech Systems and Astera Labs, positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amtech Systems position performs unexpectedly, Astera Labs, 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 Astera Labs, will offset losses from the drop in Astera Labs,'s long position.

The idea behind Amtech Systems and Astera Labs, Common pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.