Correlation Between Atomera and Cohu

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

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

Diversification Opportunities for Atomera and Cohu

0.52

Correlation Coefficient

Atomera  Cohu

Very weak diversification

The 3 months correlation between Atomera and Cohu is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding Atomera and Cohu Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cohu Inc and Atomera 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 Atomera are associated (or correlated) with Cohu. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cohu Inc has no effect on the direction of Atomera i.e., Atomera and Cohu go up and down completely randomly.

Pair Corralation between Atomera and Cohu

Given the investment horizon of 90 days Atomera is expected to generate 2.38 times more return on investment than Cohu. However, Atomera is 2.38 times more volatile than Cohu Inc. It trades about 0.22 of its potential returns per unit of risk. Cohu Inc is currently generating about -0.01 per unit of risk. If you would invest  269.00  in Atomera on August 30, 2024 and sell it today you would earn a total of  315.00  from holding Atomera or generate 117.1% return on investment over 90 days.

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

Atomera  vs.  Cohu Inc

Atomera

Risk-Adjusted Performance

17 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Atomera are ranked lower than 17 (%) of all global equities and portfolios over the last 90 days. In spite of very uncertain basic indicators, Atomera displayed solid returns over the last few months and may actually be approaching a breakup point.

Cohu Inc

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Cohu Inc has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable technical indicators, Cohu is not utilizing all of its potentials. The latest stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with Atomera and Cohu

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

The idea behind Atomera and Cohu Inc 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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.