Correlation Between PLAY2CHILL and Axcelis Technologies
Can any of the company-specific risk be diversified away by investing in both PLAY2CHILL and Axcelis Technologies 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 PLAY2CHILL and Axcelis Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PLAY2CHILL SA ZY and Axcelis Technologies, you can compare the effects of market volatilities on PLAY2CHILL and Axcelis Technologies 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 PLAY2CHILL with a short position of Axcelis Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of PLAY2CHILL and Axcelis Technologies.
Diversification Opportunities for PLAY2CHILL and Axcelis Technologies
-0.36 | Correlation Coefficient |
Very good diversification
The 3 months correlation between PLAY2CHILL and Axcelis is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding PLAY2CHILL SA ZY and Axcelis Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Axcelis Technologies and PLAY2CHILL 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 PLAY2CHILL SA ZY are associated (or correlated) with Axcelis Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Axcelis Technologies has no effect on the direction of PLAY2CHILL i.e., PLAY2CHILL and Axcelis Technologies go up and down completely randomly.
Pair Corralation between PLAY2CHILL and Axcelis Technologies
Assuming the 90 days horizon PLAY2CHILL SA ZY is expected to generate 1.35 times more return on investment than Axcelis Technologies. However, PLAY2CHILL is 1.35 times more volatile than Axcelis Technologies. It trades about 0.04 of its potential returns per unit of risk. Axcelis Technologies is currently generating about -0.09 per unit of risk. If you would invest 82.00 in PLAY2CHILL SA ZY on September 13, 2024 and sell it today you would earn a total of 2.00 from holding PLAY2CHILL SA ZY or generate 2.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
PLAY2CHILL SA ZY vs. Axcelis Technologies
Performance |
| Timeline |
| PLAY2CHILL SA ZY |
| Axcelis Technologies |
PLAY2CHILL and Axcelis Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PLAY2CHILL and Axcelis Technologies
The main advantage of trading using opposite PLAY2CHILL and Axcelis Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PLAY2CHILL position performs unexpectedly, Axcelis Technologies 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 Axcelis Technologies will offset losses from the drop in Axcelis Technologies' long position.| PLAY2CHILL vs. MAVEN WIRELESS SWEDEN | PLAY2CHILL vs. JAPAN TOBACCO UNSPADR12 | PLAY2CHILL vs. Verizon Communications | PLAY2CHILL vs. United Utilities Group |
| Axcelis Technologies vs. UET United Electronic | Axcelis Technologies vs. Amkor Technology | Axcelis Technologies vs. DXC Technology Co | Axcelis Technologies vs. X FAB Silicon Foundries |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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