Correlation Between Axcelis Technologies and Harmonic
Can any of the company-specific risk be diversified away by investing in both Axcelis Technologies and Harmonic 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 Harmonic into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Axcelis Technologies and Harmonic, you can compare the effects of market volatilities on Axcelis Technologies and Harmonic 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 Harmonic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Axcelis Technologies and Harmonic.
Diversification Opportunities for Axcelis Technologies and Harmonic
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Axcelis and Harmonic is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Axcelis Technologies and Harmonic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Harmonic 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 Harmonic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Harmonic has no effect on the direction of Axcelis Technologies i.e., Axcelis Technologies and Harmonic go up and down completely randomly.
Pair Corralation between Axcelis Technologies and Harmonic
Given the investment horizon of 90 days Axcelis Technologies is expected to under-perform the Harmonic. In addition to that, Axcelis Technologies is 1.24 times more volatile than Harmonic. It trades about -0.32 of its total potential returns per unit of risk. Harmonic is currently generating about 0.18 per unit of volatility. If you would invest 1,158 in Harmonic on August 31, 2024 and sell it today you would earn a total of 98.00 from holding Harmonic or generate 8.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Axcelis Technologies vs. Harmonic
Performance |
| Timeline |
| Axcelis Technologies |
| Harmonic |
Axcelis Technologies and Harmonic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Axcelis Technologies and Harmonic
The main advantage of trading using opposite Axcelis Technologies and Harmonic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Axcelis Technologies position performs unexpectedly, Harmonic 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 Harmonic will offset losses from the drop in Harmonic's long position.| Axcelis Technologies vs. NVE Corporation | Axcelis Technologies vs. Photronics | Axcelis Technologies vs. Kulicke and Soffa | Axcelis Technologies vs. Alvarium Tiedemann Holdings |
| Harmonic vs. NETGEAR | Harmonic vs. Juniper Networks | Harmonic vs. Digi International | Harmonic vs. Clearfield |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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