Correlation Between Acm Research and Axcelis Technologies
Can any of the company-specific risk be diversified away by investing in both Acm Research and Axcelis Technologies 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 Acm Research and Axcelis Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Acm Research and Axcelis Technologies, you can compare the effects of market volatilities on Acm Research and Axcelis Technologies 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 Acm Research with a short position of Axcelis Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Acm Research and Axcelis Technologies.
Diversification Opportunities for Acm Research and Axcelis Technologies
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Acm and Axcelis is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding Acm Research and Axcelis Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Axcelis Technologies and Acm Research 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 Acm Research are associated (or correlated) with Axcelis Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Axcelis Technologies has no effect on the direction of Acm Research i.e., Acm Research and Axcelis Technologies go up and down completely randomly.
Pair Corralation between Acm Research and Axcelis Technologies
Given the investment horizon of 90 days Acm Research is expected to generate 1.66 times more return on investment than Axcelis Technologies. However, Acm Research is 1.66 times more volatile than Axcelis Technologies. It trades about 0.04 of its potential returns per unit of risk. Axcelis Technologies is currently generating about -0.03 per unit of risk. If you would invest 1,316 in Acm Research on November 2, 2024 and sell it today you would earn a total of 738.00 from holding Acm Research or generate 56.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Acm Research vs. Axcelis Technologies
Performance |
| Timeline |
| Acm Research |
| Axcelis Technologies |
Acm Research and Axcelis Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Acm Research and Axcelis Technologies
The main advantage of trading using opposite Acm Research and Axcelis Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Acm Research position performs unexpectedly, Axcelis Technologies 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 Axcelis Technologies will offset losses from the drop in Axcelis Technologies' long position.| Acm Research vs. Axcelis Technologies | Acm Research vs. inTest | Acm Research vs. Lam Research Corp | Acm Research vs. Photronics |
| Axcelis Technologies vs. inTest | Axcelis Technologies vs. Lam Research Corp | Axcelis Technologies vs. Photronics | Axcelis Technologies vs. indie 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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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