Correlation Between Amtech Systems and Chevron Corp

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

By analyzing existing cross correlation between Amtech Systems and Chevron Corp, you can compare the effects of market volatilities on Amtech Systems and Chevron Corp 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 Chevron Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amtech Systems and Chevron Corp.

Diversification Opportunities for Amtech Systems and Chevron Corp

0.83

Correlation Coefficient

Amtech Systems  Chevron Corp

Very poor diversification

The 3 months correlation between Amtech and Chevron is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Amtech Systems and Chevron Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chevron Corp 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 Chevron Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chevron Corp has no effect on the direction of Amtech Systems i.e., Amtech Systems and Chevron Corp go up and down completely randomly.

Pair Corralation between Amtech Systems and Chevron Corp

Given the investment horizon of 90 days Amtech Systems is expected to generate 3.2 times more return on investment than Chevron Corp. However, Amtech Systems is 3.2 times more volatile than Chevron Corp. It trades about 0.12 of its potential returns per unit of risk. Chevron Corp is currently generating about 0.16 per unit of risk. If you would invest  394.00  in Amtech Systems on May 17, 2025 and sell it today you would earn a total of  111.00  from holding Amtech Systems or generate 28.17% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Strong
Accuracy	100.0%
Values	Daily Returns

Amtech Systems  vs.  Chevron Corp

Amtech Systems

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Amtech Systems are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively weak basic indicators, Amtech Systems unveiled solid returns over the last few months and may actually be approaching a breakup point.

Chevron Corp

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Chevron Corp are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. In spite of fairly conflicting basic indicators, Chevron Corp may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Pair Trading with Amtech Systems and Chevron Corp

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

The idea behind Amtech Systems and Chevron Corp 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.

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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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.