Correlation Between Arteris and Aehr Test
Can any of the company-specific risk be diversified away by investing in both Arteris and Aehr Test 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 Arteris and Aehr Test into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Arteris and Aehr Test Systems, you can compare the effects of market volatilities on Arteris and Aehr Test 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 Arteris with a short position of Aehr Test. Check out your portfolio center. Please also check ongoing floating volatility patterns of Arteris and Aehr Test.
Diversification Opportunities for Arteris and Aehr Test
Very good diversification
The 3 months correlation between Arteris and Aehr is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding Arteris and Aehr Test Systems in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aehr Test Systems and Arteris 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 Arteris are associated (or correlated) with Aehr Test. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aehr Test Systems has no effect on the direction of Arteris i.e., Arteris and Aehr Test go up and down completely randomly.
Pair Corralation between Arteris and Aehr Test
Considering the 90-day investment horizon Arteris is expected to generate 1.72 times less return on investment than Aehr Test. But when comparing it to its historical volatility, Arteris is 1.65 times less risky than Aehr Test. It trades about 0.07 of its potential returns per unit of risk. Aehr Test Systems is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 1,035 in Aehr Test Systems on September 22, 2024 and sell it today you would earn a total of 390.00 from holding Aehr Test Systems or generate 37.68% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Arteris vs. Aehr Test Systems
Performance |
Timeline |
Arteris |
Aehr Test Systems |
Arteris and Aehr Test Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Arteris and Aehr Test
The main advantage of trading using opposite Arteris and Aehr Test positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Arteris position performs unexpectedly, Aehr Test 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 Aehr Test will offset losses from the drop in Aehr Test's long position.Arteris vs. Diodes Incorporated | Arteris vs. Daqo New Energy | Arteris vs. Micron Technology | Arteris vs. MagnaChip Semiconductor |
Aehr Test vs. Photronics | Aehr Test vs. Lam Research Corp | Aehr Test vs. KLA Tencor | Aehr Test vs. Kulicke and Soffa |
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 Stocks Directory module to find actively traded stocks across global markets.
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