Correlation Between Atomera and Asm Pacific

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

By analyzing existing cross correlation between Atomera and Asm Pacific Technology, you can compare the effects of market volatilities on Atomera and Asm Pacific 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 Asm Pacific. Check out your portfolio center. Please also check ongoing floating volatility patterns of Atomera and Asm Pacific.

Diversification Opportunities for Atomera and Asm Pacific

-0.74

Correlation Coefficient

Atomera  Asm Pacific

Pay attention - limited upside

The 3 months correlation between Atomera and Asm is -0.74. Overlapping area represents the amount of risk that can be diversified away by holding Atomera and Asm Pacific Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Asm Pacific Technology 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 Asm Pacific. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Asm Pacific Technology has no effect on the direction of Atomera i.e., Atomera and Asm Pacific go up and down completely randomly.

Pair Corralation between Atomera and Asm Pacific

Given the investment horizon of 90 days Atomera is expected to generate 3.81 times more return on investment than Asm Pacific. However, Atomera is 3.81 times more volatile than Asm Pacific Technology. It trades about 0.61 of its potential returns per unit of risk. Asm Pacific Technology is currently generating about -0.01 per unit of risk. If you would invest  637.00  in Atomera on October 1, 2024 and sell it today you would earn a total of  790.00  from holding Atomera or generate 124.02% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	95.24%
Values	Daily Returns

Atomera  vs.  Asm Pacific Technology

Atomera

Risk-Adjusted Performance

32 of 100

Very Strong

Compared to the overall equity markets, risk-adjusted returns on investments in Atomera are ranked lower than 32 (%) 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.

Asm Pacific Technology

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Asm Pacific Technology 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 fairly strong which may send shares a bit higher in January 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Pair Trading with Atomera and Asm Pacific

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

The idea behind Atomera and Asm Pacific Technology 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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.