Correlation Between Ichor Holdings and Atomera

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

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

Diversification Opportunities for Ichor Holdings and Atomera

0.49

Correlation Coefficient

Ichor Holdings  Atomera

Very weak diversification

The 3 months correlation between Ichor and Atomera is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding Ichor Holdings and Atomera in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Atomera and Ichor Holdings 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 Ichor Holdings are associated (or correlated) with Atomera. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Atomera has no effect on the direction of Ichor Holdings i.e., Ichor Holdings and Atomera go up and down completely randomly.

Pair Corralation between Ichor Holdings and Atomera

Given the investment horizon of 90 days Ichor Holdings is expected to generate 0.37 times more return on investment than Atomera. However, Ichor Holdings is 2.7 times less risky than Atomera. It trades about -0.1 of its potential returns per unit of risk. Atomera is currently generating about -0.09 per unit of risk. If you would invest  3,100  in Ichor Holdings on December 29, 2024 and sell it today you would lose (781.00) from holding Ichor Holdings or give up 25.19% of portfolio value over 90 days.

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

Ichor Holdings  vs.  Atomera

Ichor Holdings

Risk-Adjusted Performance

Very Weak

Over the last 90 days Ichor Holdings 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 technical indicators remain relatively invariable which may send shares a bit higher in April 2025. The latest agitation may also be a sign of long-running up-swing for the enterprise retail investors.

Atomera

Risk-Adjusted Performance

Very Weak

Over the last 90 days Atomera has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of uncertain performance in the last few months, the Stock's basic indicators remain very healthy which may send shares a bit higher in April 2025. The recent disarray may also be a sign of long period up-swing for the firm investors.

Pair Trading with Ichor Holdings and Atomera

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

The idea behind Ichor Holdings and Atomera 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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.