Correlation Between Equitech International and Acm Research

Can any of the company-specific risk be diversified away by investing in both Equitech International and Acm Research 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 Equitech International and Acm Research into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Equitech International and Acm Research, you can compare the effects of market volatilities on Equitech International and Acm Research 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 Equitech International with a short position of Acm Research. Check out your portfolio center. Please also check ongoing floating volatility patterns of Equitech International and Acm Research.

Diversification Opportunities for Equitech International and Acm Research

0.0

Correlation Coefficient

Equitech International  Acm Research

Pay attention - limited upside

The 3 months correlation between Equitech and Acm is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Equitech International and Acm Research in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Acm Research and Equitech International 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 Equitech International are associated (or correlated) with Acm Research. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Acm Research has no effect on the direction of Equitech International i.e., Equitech International and Acm Research go up and down completely randomly.

Pair Corralation between Equitech International and Acm Research

If you would invest  1,958  in Acm Research on May 6, 2025 and sell it today you would earn a total of  990.00  from holding Acm Research or generate 50.56% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	96.88%
Values	Daily Returns

Equitech International  vs.  Acm Research

Equitech International

Risk-Adjusted Performance

Very Weak

Over the last 90 days Equitech International has generated negative risk-adjusted returns adding no value to investors with long positions. Despite quite persistent basic indicators, Equitech International is not utilizing all of its potentials. The recent stock price mess, may contribute to short-term losses for the institutional investors.

Acm Research

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Acm Research are ranked lower than 17 (%) of all global equities and portfolios over the last 90 days. Even with relatively uncertain primary indicators, Acm Research reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Equitech International and Acm Research

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

The idea behind Equitech International and Acm Research 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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.