Correlation Between Lasertec and Amtech Systems

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

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

Diversification Opportunities for Lasertec and Amtech Systems

0.58

Correlation Coefficient

Lasertec  Amtech Systems

Very weak diversification

The 3 months correlation between Lasertec and Amtech is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding Lasertec and Amtech Systems in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amtech Systems and Lasertec 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 Lasertec are associated (or correlated) with Amtech Systems. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amtech Systems has no effect on the direction of Lasertec i.e., Lasertec and Amtech Systems go up and down completely randomly.

Pair Corralation between Lasertec and Amtech Systems

Assuming the 90 days horizon Lasertec is expected to generate 1.09 times less return on investment than Amtech Systems. In addition to that, Lasertec is 1.08 times more volatile than Amtech Systems. It trades about 0.11 of its total potential returns per unit of risk. Amtech Systems is currently generating about 0.13 per unit of volatility. If you would invest  360.00  in Amtech Systems on May 2, 2025 and sell it today you would earn a total of  102.00  from holding Amtech Systems or generate 28.33% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	96.83%
Values	Daily Returns

Lasertec  vs.  Amtech Systems

Lasertec

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Lasertec are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile fundamental indicators, Lasertec reported solid returns over the last few months and may actually be approaching a breakup point.

Amtech Systems

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Amtech Systems are ranked lower than 10 (%) 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.

Pair Trading with Lasertec and Amtech Systems

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

The idea behind Lasertec and Amtech Systems 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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.