Correlation Between Axcelis Technologies and Array Digital

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Can any of the company-specific risk be diversified away by investing in both Axcelis Technologies and Array Digital 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 Axcelis Technologies and Array Digital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Axcelis Technologies and Array Digital Infrastructure, you can compare the effects of market volatilities on Axcelis Technologies and Array Digital 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 Axcelis Technologies with a short position of Array Digital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Axcelis Technologies and Array Digital.

Diversification Opportunities for Axcelis Technologies and Array Digital

0.64
  Correlation Coefficient

Poor diversification

The 3 months correlation between Axcelis and Array is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding Axcelis Technologies and Array Digital Infrastructure in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Array Digital Infras and Axcelis Technologies 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 Axcelis Technologies are associated (or correlated) with Array Digital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Array Digital Infras has no effect on the direction of Axcelis Technologies i.e., Axcelis Technologies and Array Digital go up and down completely randomly.

Pair Corralation between Axcelis Technologies and Array Digital

Given the investment horizon of 90 days Axcelis Technologies is expected to generate 1.53 times more return on investment than Array Digital. However, Axcelis Technologies is 1.53 times more volatile than Array Digital Infrastructure. It trades about 0.09 of its potential returns per unit of risk. Array Digital Infrastructure is currently generating about 0.12 per unit of risk. If you would invest  7,956  in Axcelis Technologies on October 31, 2025 and sell it today you would earn a total of  1,167  from holding Axcelis Technologies or generate 14.67% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthSignificant
Accuracy100.0%
ValuesDaily Returns

Axcelis Technologies  vs.  Array Digital Infrastructure

 Performance 
       Timeline  
Axcelis Technologies 

Risk-Adjusted Performance

Fair

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Axcelis Technologies are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively unsteady essential indicators, Axcelis Technologies unveiled solid returns over the last few months and may actually be approaching a breakup point.
Array Digital Infras 

Risk-Adjusted Performance

Fair

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Array Digital Infrastructure are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. In spite of rather uncertain fundamental indicators, Array Digital exhibited solid returns over the last few months and may actually be approaching a breakup point.

Axcelis Technologies and Array Digital Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Axcelis Technologies and Array Digital

The main advantage of trading using opposite Axcelis Technologies and Array Digital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Axcelis Technologies position performs unexpectedly, Array Digital 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 Array Digital will offset losses from the drop in Array Digital's long position.
The idea behind Axcelis Technologies and Array Digital Infrastructure 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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..

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