Correlation Between Axcelis Technologies and Navitas Semiconductor

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Can any of the company-specific risk be diversified away by investing in both Axcelis Technologies and Navitas Semiconductor 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 Navitas Semiconductor into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Axcelis Technologies and Navitas Semiconductor Corp, you can compare the effects of market volatilities on Axcelis Technologies and Navitas Semiconductor 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 Navitas Semiconductor. Check out your portfolio center. Please also check ongoing floating volatility patterns of Axcelis Technologies and Navitas Semiconductor.

Diversification Opportunities for Axcelis Technologies and Navitas Semiconductor

AxcelisNavitasDiversified AwayAxcelisNavitasDiversified Away100%
0.12
  Correlation Coefficient

Average diversification

The 3 months correlation between Axcelis and Navitas is 0.12. Overlapping area represents the amount of risk that can be diversified away by holding Axcelis Technologies and Navitas Semiconductor Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Navitas Semiconductor 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 Navitas Semiconductor. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Navitas Semiconductor has no effect on the direction of Axcelis Technologies i.e., Axcelis Technologies and Navitas Semiconductor go up and down completely randomly.

Pair Corralation between Axcelis Technologies and Navitas Semiconductor

Given the investment horizon of 90 days Axcelis Technologies is expected to under-perform the Navitas Semiconductor. But the stock apears to be less risky and, when comparing its historical volatility, Axcelis Technologies is 1.35 times less risky than Navitas Semiconductor. The stock trades about -0.13 of its potential returns per unit of risk. The Navitas Semiconductor Corp is currently generating about -0.06 of returns per unit of risk over similar time horizon. If you would invest  345.00  in Navitas Semiconductor Corp on November 25, 2024 and sell it today you would lose (28.00) from holding Navitas Semiconductor Corp or give up 8.12% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

Axcelis Technologies  vs.  Navitas Semiconductor Corp

 Performance 
JavaScript chart by amCharts 3.21.15Dec2025Feb 050100
JavaScript chart by amCharts 3.21.15ACLS NVTS
       Timeline  
Axcelis Technologies 

Risk-Adjusted Performance

Very Weak

 
Weak
 
Strong
Over the last 90 days Axcelis Technologies has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of uncertain performance in the last few months, the Stock's essential indicators remain comparatively stable which may send shares a bit higher in March 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.
JavaScript chart by amCharts 3.21.15DecJanFebJanFeb60657075
Navitas Semiconductor 

Risk-Adjusted Performance

Modest

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Navitas Semiconductor Corp are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively unfluctuating basic indicators, Navitas Semiconductor unveiled solid returns over the last few months and may actually be approaching a breakup point.
JavaScript chart by amCharts 3.21.15DecJanFebJanFeb2.533.544.5

Axcelis Technologies and Navitas Semiconductor Volatility Contrast

   Predicted Return Density   
JavaScript chart by amCharts 3.21.15-4.75-3.56-2.36-1.170.01.052.113.184.255.33 0.010.020.030.040.05
JavaScript chart by amCharts 3.21.15ACLS NVTS
       Returns  

Pair Trading with Axcelis Technologies and Navitas Semiconductor

The main advantage of trading using opposite Axcelis Technologies and Navitas Semiconductor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Axcelis Technologies position performs unexpectedly, Navitas Semiconductor 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 Navitas Semiconductor will offset losses from the drop in Navitas Semiconductor's long position.
The idea behind Axcelis Technologies and Navitas Semiconductor Corp pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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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 Global Correlations module to find global opportunities by holding instruments from different markets.

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