Correlation Between Photronics and Amtech Systems
Can any of the company-specific risk be diversified away by investing in both Photronics and Amtech Systems 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 Photronics and Amtech Systems into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Photronics and Amtech Systems, you can compare the effects of market volatilities on Photronics and Amtech Systems 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 Photronics with a short position of Amtech Systems. Check out your portfolio center. Please also check ongoing floating volatility patterns of Photronics and Amtech Systems.
Diversification Opportunities for Photronics and Amtech Systems
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Photronics and Amtech is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Photronics and Amtech Systems in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amtech Systems and Photronics 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 Photronics are associated (or correlated) with Amtech Systems. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amtech Systems has no effect on the direction of Photronics i.e., Photronics and Amtech Systems go up and down completely randomly.
Pair Corralation between Photronics and Amtech Systems
Given the investment horizon of 90 days Photronics is expected to generate 3.32 times less return on investment than Amtech Systems. But when comparing it to its historical volatility, Photronics is 2.07 times less risky than Amtech Systems. It trades about 0.11 of its potential returns per unit of risk. Amtech Systems is currently generating about 0.18 of returns per unit of risk over similar time horizon. If you would invest 452.00 in Amtech Systems on July 16, 2025 and sell it today you would earn a total of 370.00 from holding Amtech Systems or generate 81.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Photronics vs. Amtech Systems
Performance |
| Timeline |
| Photronics |
| Amtech Systems |
Photronics and Amtech Systems Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Photronics and Amtech Systems
The main advantage of trading using opposite Photronics and Amtech Systems positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Photronics position performs unexpectedly, Amtech Systems 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 Amtech Systems will offset losses from the drop in Amtech Systems' long position.| Photronics vs. inTest | Photronics vs. Lam Research Corp | Photronics vs. indie Semiconductor | Photronics vs. Amtech Systems |
| Amtech Systems vs. Aehr Test Systems | Amtech Systems vs. AXT Inc | Amtech Systems vs. Ichor Holdings | Amtech Systems vs. IPG Photonics |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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