Correlation Between Axcelis Technologies and MKS Instruments
Can any of the company-specific risk be diversified away by investing in both Axcelis Technologies and MKS Instruments 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 MKS Instruments into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Axcelis Technologies and MKS Instruments, you can compare the effects of market volatilities on Axcelis Technologies and MKS Instruments 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 MKS Instruments. Check out your portfolio center. Please also check ongoing floating volatility patterns of Axcelis Technologies and MKS Instruments.
Diversification Opportunities for Axcelis Technologies and MKS Instruments
0.11 | Correlation Coefficient |
Average diversification
The 3 months correlation between Axcelis and MKS is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding Axcelis Technologies and MKS Instruments in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MKS Instruments 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 MKS Instruments. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MKS Instruments has no effect on the direction of Axcelis Technologies i.e., Axcelis Technologies and MKS Instruments go up and down completely randomly.
Pair Corralation between Axcelis Technologies and MKS Instruments
Given the investment horizon of 90 days Axcelis Technologies is expected to under-perform the MKS Instruments. But the stock apears to be less risky and, when comparing its historical volatility, Axcelis Technologies is 1.26 times less risky than MKS Instruments. The stock trades about -0.32 of its potential returns per unit of risk. The MKS Instruments is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest 10,212 in MKS Instruments on August 31, 2024 and sell it today you would earn a total of 1,024 from holding MKS Instruments or generate 10.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Axcelis Technologies vs. MKS Instruments
Performance |
| Timeline |
| Axcelis Technologies |
| MKS Instruments |
Axcelis Technologies and MKS Instruments Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Axcelis Technologies and MKS Instruments
The main advantage of trading using opposite Axcelis Technologies and MKS Instruments positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Axcelis Technologies position performs unexpectedly, MKS Instruments 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 MKS Instruments will offset losses from the drop in MKS Instruments' long position.| Axcelis Technologies vs. NVE Corporation | Axcelis Technologies vs. Photronics | Axcelis Technologies vs. Kulicke and Soffa | Axcelis Technologies vs. Alvarium Tiedemann Holdings |
| MKS Instruments vs. Teledyne Technologies Incorporated | MKS Instruments vs. ESCO Technologies | MKS Instruments vs. Sensata Technologies Holding | MKS Instruments vs. Coherent |
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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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