Correlation Between Axcelis Technologies and InTest
Can any of the company-specific risk be diversified away by investing in both Axcelis Technologies and InTest 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 InTest into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Axcelis Technologies and inTest, you can compare the effects of market volatilities on Axcelis Technologies and InTest 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 InTest. Check out your portfolio center. Please also check ongoing floating volatility patterns of Axcelis Technologies and InTest.
Diversification Opportunities for Axcelis Technologies and InTest
-0.44 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Axcelis and InTest is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding Axcelis Technologies and inTest in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on inTest 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 InTest. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of inTest has no effect on the direction of Axcelis Technologies i.e., Axcelis Technologies and InTest go up and down completely randomly.
Pair Corralation between Axcelis Technologies and InTest
Given the investment horizon of 90 days Axcelis Technologies is expected to under-perform the InTest. But the stock apears to be less risky and, when comparing its historical volatility, Axcelis Technologies is 1.11 times less risky than InTest. The stock trades about -0.08 of its potential returns per unit of risk. The inTest is currently generating about -0.03 of returns per unit of risk over similar time horizon. If you would invest 1,010 in inTest on August 24, 2024 and sell it today you would lose (231.00) from holding inTest or give up 22.87% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.21% |
| Values | Daily Returns |
Axcelis Technologies vs. inTest
Performance |
| Timeline |
| Axcelis Technologies |
| inTest |
Axcelis Technologies and InTest Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Axcelis Technologies and InTest
The main advantage of trading using opposite Axcelis Technologies and InTest positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Axcelis Technologies position performs unexpectedly, InTest 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 InTest will offset losses from the drop in InTest's long position.| Axcelis Technologies vs. inTest | Axcelis Technologies vs. Lam Research Corp | Axcelis Technologies vs. Photronics | Axcelis Technologies vs. indie Semiconductor |
| InTest vs. Lam Research Corp | InTest vs. KLA Tencor | InTest vs. Kulicke and Soffa | InTest vs. Axcelis Technologies |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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