Correlation Between Clearwater Analytics and Axcelis Technologies
Can any of the company-specific risk be diversified away by investing in both Clearwater Analytics 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 Clearwater Analytics and Axcelis Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Clearwater Analytics Holdings and Axcelis Technologies, you can compare the effects of market volatilities on Clearwater Analytics 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 Clearwater Analytics with a short position of Axcelis Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Clearwater Analytics and Axcelis Technologies.
Diversification Opportunities for Clearwater Analytics and Axcelis Technologies
-0.83 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Clearwater and Axcelis is -0.83. Overlapping area represents the amount of risk that can be diversified away by holding Clearwater Analytics Holdings and Axcelis Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Axcelis Technologies and Clearwater Analytics 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 Clearwater Analytics Holdings 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 Clearwater Analytics i.e., Clearwater Analytics and Axcelis Technologies go up and down completely randomly.
Pair Corralation between Clearwater Analytics and Axcelis Technologies
Given the investment horizon of 90 days Clearwater Analytics Holdings is expected to generate 0.77 times more return on investment than Axcelis Technologies. However, Clearwater Analytics Holdings is 1.29 times less risky than Axcelis Technologies. It trades about 0.17 of its potential returns per unit of risk. Axcelis Technologies is currently generating about -0.07 per unit of risk. If you would invest 1,881 in Clearwater Analytics Holdings on August 28, 2024 and sell it today you would earn a total of 1,359 from holding Clearwater Analytics Holdings or generate 72.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Clearwater Analytics Holdings vs. Axcelis Technologies
Performance |
| Timeline |
| Clearwater Analytics |
| Axcelis Technologies |
Clearwater Analytics and Axcelis Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Clearwater Analytics and Axcelis Technologies
The main advantage of trading using opposite Clearwater Analytics and Axcelis Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Clearwater Analytics 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.| Clearwater Analytics vs. OLB Group | Clearwater Analytics vs. Friendable | Clearwater Analytics vs. KwikClick |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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