Correlation Between Axcelis Technologies and Cyberlux Corp
Can any of the company-specific risk be diversified away by investing in both Axcelis Technologies and Cyberlux Corp 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 Cyberlux Corp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Axcelis Technologies and Cyberlux Corp, you can compare the effects of market volatilities on Axcelis Technologies and Cyberlux Corp 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 Cyberlux Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Axcelis Technologies and Cyberlux Corp.
Diversification Opportunities for Axcelis Technologies and Cyberlux Corp
-0.57 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Axcelis and Cyberlux is -0.57. Overlapping area represents the amount of risk that can be diversified away by holding Axcelis Technologies and Cyberlux Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cyberlux Corp 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 Cyberlux Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cyberlux Corp has no effect on the direction of Axcelis Technologies i.e., Axcelis Technologies and Cyberlux Corp go up and down completely randomly.
Pair Corralation between Axcelis Technologies and Cyberlux Corp
Given the investment horizon of 90 days Axcelis Technologies is expected to generate 0.28 times more return on investment than Cyberlux Corp. However, Axcelis Technologies is 3.53 times less risky than Cyberlux Corp. It trades about -0.24 of its potential returns per unit of risk. Cyberlux Corp is currently generating about -0.27 per unit of risk. If you would invest 9,012 in Axcelis Technologies on August 27, 2024 and sell it today you would lose (1,265) from holding Axcelis Technologies or give up 14.04% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Axcelis Technologies vs. Cyberlux Corp
Performance |
| Timeline |
| Axcelis Technologies |
| Cyberlux Corp |
Axcelis Technologies and Cyberlux Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Axcelis Technologies and Cyberlux Corp
The main advantage of trading using opposite Axcelis Technologies and Cyberlux Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Axcelis Technologies position performs unexpectedly, Cyberlux Corp 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 Cyberlux Corp will offset losses from the drop in Cyberlux Corp's long position.The idea behind Axcelis Technologies and Cyberlux Corp 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.| Cyberlux Corp vs. Nano Labs | Cyberlux Corp vs. Wisekey International Holding | Cyberlux Corp vs. Peraso Inc | Cyberlux Corp vs. GSI Technology |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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