Correlation Between Axcelis Technologies and Kopin
Can any of the company-specific risk be diversified away by investing in both Axcelis Technologies and Kopin 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 Kopin into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Axcelis Technologies and Kopin, you can compare the effects of market volatilities on Axcelis Technologies and Kopin 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 Kopin. Check out your portfolio center. Please also check ongoing floating volatility patterns of Axcelis Technologies and Kopin.
Diversification Opportunities for Axcelis Technologies and Kopin
-0.8 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Axcelis and Kopin is -0.8. Overlapping area represents the amount of risk that can be diversified away by holding Axcelis Technologies and Kopin in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kopin 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 Kopin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kopin has no effect on the direction of Axcelis Technologies i.e., Axcelis Technologies and Kopin go up and down completely randomly.
Pair Corralation between Axcelis Technologies and Kopin
Given the investment horizon of 90 days Axcelis Technologies is expected to under-perform the Kopin. But the stock apears to be less risky and, when comparing its historical volatility, Axcelis Technologies is 3.9 times less risky than Kopin. The stock trades about -0.05 of its potential returns per unit of risk. The Kopin is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest 128.00 in Kopin on October 25, 2024 and sell it today you would earn a total of 19.00 from holding Kopin or generate 14.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Axcelis Technologies vs. Kopin
Performance |
| Timeline |
| Axcelis Technologies |
| Kopin |
Axcelis Technologies and Kopin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Axcelis Technologies and Kopin
The main advantage of trading using opposite Axcelis Technologies and Kopin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Axcelis Technologies position performs unexpectedly, Kopin 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 Kopin will offset losses from the drop in Kopin's long position.| Axcelis Technologies vs. inTest | Axcelis Technologies vs. Lam Research Corp | Axcelis Technologies vs. Photronics | Axcelis Technologies vs. indie Semiconductor |
| Kopin vs. Universal Display | Kopin vs. Daktronics | Kopin vs. KULR Technology Group | Kopin vs. LightPath 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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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