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

0.58

Correlation Coefficient

Ichor Holdings  Atomera

Very weak diversification

The 3 months correlation between Ichor and Atomera is 0.58. 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 6.29 times less return on investment than Atomera. But when comparing it to its historical volatility, Ichor Holdings is 1.72 times less risky than Atomera. It trades about 0.07 of its potential returns per unit of risk. Atomera is currently generating about 0.24 of returns per unit of risk over similar time horizon. If you would invest  249.00  in Atomera on August 31, 2024 and sell it today you would earn a total of  335.00  from holding Atomera or generate 134.54% return on investment 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

5 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Ichor Holdings are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. Even with relatively uncertain technical indicators, Ichor Holdings reported solid returns over the last few months and may actually be approaching a breakup point.

Atomera

Risk-Adjusted Performance

18 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Atomera are ranked lower than 18 (%) 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.

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 Equity Valuation module to check real value of public entities based on technical and fundamental data.