Correlation Between Onto Innovation and Cohu
Can any of the company-specific risk be diversified away by investing in both Onto Innovation 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 Onto Innovation and Cohu into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Onto Innovation and Cohu Inc, you can compare the effects of market volatilities on Onto Innovation 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 Onto Innovation with a short position of Cohu. Check out your portfolio center. Please also check ongoing floating volatility patterns of Onto Innovation and Cohu.
Diversification Opportunities for Onto Innovation and Cohu
-0.46 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Onto and Cohu is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding Onto Innovation and Cohu Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cohu Inc and Onto Innovation 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 Onto Innovation 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 Onto Innovation i.e., Onto Innovation and Cohu go up and down completely randomly.
Pair Corralation between Onto Innovation and Cohu
Given the investment horizon of 90 days Onto Innovation is expected to under-perform the Cohu. In addition to that, Onto Innovation is 1.81 times more volatile than Cohu Inc. It trades about -0.05 of its total potential returns per unit of risk. Cohu Inc is currently generating about 0.09 per unit of volatility. If you would invest 1,669 in Cohu Inc on May 2, 2025 and sell it today you would earn a total of 229.00 from holding Cohu Inc or generate 13.72% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 98.39% |
| Values | Daily Returns |
Onto Innovation vs. Cohu Inc
Performance |
| Timeline |
| Onto Innovation |
| Cohu Inc |
Onto Innovation and Cohu Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Onto Innovation and Cohu
The main advantage of trading using opposite Onto Innovation and Cohu positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Onto Innovation 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.| Onto Innovation vs. Camtek | Onto Innovation vs. Amtech Systems | Onto Innovation vs. Veeco Instruments | Onto Innovation vs. Ichor Holdings |
| Cohu vs. Onto Innovation | Cohu vs. Photronics | Cohu vs. Ultra Clean Holdings | Cohu vs. Axcelis Technologies |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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