Correlation Between Acm Research and Ichor Holdings

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

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

Diversification Opportunities for Acm Research and Ichor Holdings

-0.46

Correlation Coefficient

Acm Research  Ichor Holdings

Very good diversification

The 3 months correlation between Acm and Ichor is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding Acm Research and Ichor Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ichor Holdings and Acm Research 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 Acm Research are associated (or correlated) with Ichor Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ichor Holdings has no effect on the direction of Acm Research i.e., Acm Research and Ichor Holdings go up and down completely randomly.

Pair Corralation between Acm Research and Ichor Holdings

Given the investment horizon of 90 days Acm Research is expected to generate 1.23 times more return on investment than Ichor Holdings. However, Acm Research is 1.23 times more volatile than Ichor Holdings. It trades about 0.2 of its potential returns per unit of risk. Ichor Holdings is currently generating about 0.01 per unit of risk. If you would invest  1,410  in Acm Research on October 6, 2024 and sell it today you would earn a total of  147.00  from holding Acm Research or generate 10.43% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

Acm Research  vs.  Ichor Holdings

Acm Research

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Acm Research has generated negative risk-adjusted returns adding no value to investors with long positions. Even with uncertain performance in the last few months, the Stock's primary indicators remain relatively invariable which may send shares a bit higher in February 2025. The latest agitation may also be a sign of long-running up-swing for the enterprise retail investors.

Ichor Holdings

Risk-Adjusted Performance

3 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Ichor Holdings are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Even with relatively uncertain technical indicators, Ichor Holdings may actually be approaching a critical reversion point that can send shares even higher in February 2025.

Pair Trading with Acm Research and Ichor Holdings

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

The idea behind Acm Research and Ichor Holdings 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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.