Correlation Between Axiomtek and Solar Applied
Can any of the company-specific risk be diversified away by investing in both Axiomtek and Solar Applied 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 Axiomtek and Solar Applied into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Axiomtek Co and Solar Applied Materials, you can compare the effects of market volatilities on Axiomtek and Solar Applied 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 Axiomtek with a short position of Solar Applied. Check out your portfolio center. Please also check ongoing floating volatility patterns of Axiomtek and Solar Applied.
Diversification Opportunities for Axiomtek and Solar Applied
-0.39 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Axiomtek and Solar is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding Axiomtek Co and Solar Applied Materials in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Solar Applied Materials and Axiomtek 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 Axiomtek Co are associated (or correlated) with Solar Applied. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Solar Applied Materials has no effect on the direction of Axiomtek i.e., Axiomtek and Solar Applied go up and down completely randomly.
Pair Corralation between Axiomtek and Solar Applied
Assuming the 90 days trading horizon Axiomtek Co is expected to generate 0.68 times more return on investment than Solar Applied. However, Axiomtek Co is 1.47 times less risky than Solar Applied. It trades about 0.13 of its potential returns per unit of risk. Solar Applied Materials is currently generating about -0.07 per unit of risk. If you would invest 9,210 in Axiomtek Co on September 2, 2024 and sell it today you would earn a total of 1,340 from holding Axiomtek Co or generate 14.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Axiomtek Co vs. Solar Applied Materials
Performance |
| Timeline |
| Axiomtek |
| Solar Applied Materials |
Axiomtek and Solar Applied Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Axiomtek and Solar Applied
The main advantage of trading using opposite Axiomtek and Solar Applied positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Axiomtek position performs unexpectedly, Solar Applied 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 Solar Applied will offset losses from the drop in Solar Applied's long position.| Axiomtek vs. Silicon Power Computer | Axiomtek vs. Double Bond Chemical | Axiomtek vs. Chi Sheng Chemical | Axiomtek vs. Taita Chemical Co |
| Solar Applied vs. Wafer Works | Solar Applied vs. Sino American Silicon Products | Solar Applied vs. StShine Optical Co | Solar Applied vs. Phison Electronics |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
Other Complementary Tools
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities |