Correlation Between Axcelis Technologies and Trio Tech
Can any of the company-specific risk be diversified away by investing in both Axcelis Technologies and Trio Tech 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 Trio Tech into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Axcelis Technologies and Trio Tech International, you can compare the effects of market volatilities on Axcelis Technologies and Trio Tech 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 Trio Tech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Axcelis Technologies and Trio Tech.
Diversification Opportunities for Axcelis Technologies and Trio Tech
-0.45 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Axcelis and Trio is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding Axcelis Technologies and Trio Tech International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Trio Tech International 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 Trio Tech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Trio Tech International has no effect on the direction of Axcelis Technologies i.e., Axcelis Technologies and Trio Tech go up and down completely randomly.
Pair Corralation between Axcelis Technologies and Trio Tech
Given the investment horizon of 90 days Axcelis Technologies is expected to generate 6.14 times less return on investment than Trio Tech. But when comparing it to its historical volatility, Axcelis Technologies is 1.11 times less risky than Trio Tech. It trades about 0.01 of its potential returns per unit of risk. Trio Tech International is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 435.00 in Trio Tech International on September 23, 2024 and sell it today you would earn a total of 184.00 from holding Trio Tech International or generate 42.3% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.8% |
| Values | Daily Returns |
Axcelis Technologies vs. Trio Tech International
Performance |
| Timeline |
| Axcelis Technologies |
| Trio Tech International |
Axcelis Technologies and Trio Tech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Axcelis Technologies and Trio Tech
The main advantage of trading using opposite Axcelis Technologies and Trio Tech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Axcelis Technologies position performs unexpectedly, Trio Tech 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 Trio Tech will offset losses from the drop in Trio Tech's long position.| Axcelis Technologies vs. Diodes Incorporated | Axcelis Technologies vs. Daqo New Energy | Axcelis Technologies vs. MagnaChip Semiconductor | Axcelis Technologies vs. Nano Labs |
| Trio Tech vs. Aehr Test Systems | Trio Tech vs. Camtek | Trio Tech vs. Nova | Trio Tech 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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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