Correlation Between Axcelis Technologies and Veeco Instruments
Can any of the company-specific risk be diversified away by investing in both Axcelis Technologies and Veeco 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 Veeco 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 Veeco Instruments, you can compare the effects of market volatilities on Axcelis Technologies and Veeco 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 Veeco Instruments. Check out your portfolio center. Please also check ongoing floating volatility patterns of Axcelis Technologies and Veeco Instruments.
Diversification Opportunities for Axcelis Technologies and Veeco Instruments
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Axcelis and Veeco is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Axcelis Technologies and Veeco Instruments in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Veeco 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 Veeco Instruments. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Veeco Instruments has no effect on the direction of Axcelis Technologies i.e., Axcelis Technologies and Veeco Instruments go up and down completely randomly.
Pair Corralation between Axcelis Technologies and Veeco Instruments
Given the investment horizon of 90 days Axcelis Technologies is expected to generate 0.85 times more return on investment than Veeco Instruments. However, Axcelis Technologies is 1.17 times less risky than Veeco Instruments. It trades about -0.03 of its potential returns per unit of risk. Veeco Instruments is currently generating about -0.13 per unit of risk. If you would invest 7,205 in Axcelis Technologies on October 26, 2024 and sell it today you would lose (109.00) from holding Axcelis Technologies or give up 1.51% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Axcelis Technologies vs. Veeco Instruments
Performance |
| Timeline |
| Axcelis Technologies |
| Veeco Instruments |
Axcelis Technologies and Veeco Instruments Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Axcelis Technologies and Veeco Instruments
The main advantage of trading using opposite Axcelis Technologies and Veeco Instruments positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Axcelis Technologies position performs unexpectedly, Veeco 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 Veeco Instruments will offset losses from the drop in Veeco Instruments' long position.| Axcelis Technologies vs. inTest | Axcelis Technologies vs. Lam Research Corp | Axcelis Technologies vs. Photronics | Axcelis Technologies vs. indie Semiconductor |
| Veeco Instruments vs. Diodes Incorporated | Veeco Instruments vs. Daqo New Energy | Veeco Instruments vs. Micron Technology | Veeco Instruments vs. MagnaChip Semiconductor |
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 Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
Other Complementary Tools
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes |