Correlation Between Axcelis Technologies and Intel
Can any of the company-specific risk be diversified away by investing in both Axcelis Technologies and Intel 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 Intel into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Axcelis Technologies and Intel, you can compare the effects of market volatilities on Axcelis Technologies and Intel 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 Intel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Axcelis Technologies and Intel.
Diversification Opportunities for Axcelis Technologies and Intel
-0.58 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Axcelis and Intel is -0.58. Overlapping area represents the amount of risk that can be diversified away by holding Axcelis Technologies and Intel in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Intel 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 Intel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Intel has no effect on the direction of Axcelis Technologies i.e., Axcelis Technologies and Intel go up and down completely randomly.
Pair Corralation between Axcelis Technologies and Intel
Given the investment horizon of 90 days Axcelis Technologies is expected to under-perform the Intel. But the stock apears to be less risky and, when comparing its historical volatility, Axcelis Technologies is 1.46 times less risky than Intel. The stock trades about -0.44 of its potential returns per unit of risk. The Intel is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 2,240 in Intel on August 23, 2024 and sell it today you would earn a total of 161.00 from holding Intel or generate 7.19% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Axcelis Technologies vs. Intel
Performance |
| Timeline |
| Axcelis Technologies |
| Intel |
Axcelis Technologies and Intel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Axcelis Technologies and Intel
The main advantage of trading using opposite Axcelis Technologies and Intel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Axcelis Technologies position performs unexpectedly, Intel 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 Intel will offset losses from the drop in Intel's long position.| Axcelis Technologies vs. inTest | Axcelis Technologies vs. Lam Research Corp | Axcelis Technologies vs. Photronics | Axcelis Technologies vs. indie Semiconductor |
| Intel vs. NVIDIA | Intel vs. Taiwan Semiconductor Manufacturing | Intel vs. Marvell Technology Group | Intel vs. Micron 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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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