Correlation Between FORWARD AIR and Axcelis Technologies
Can any of the company-specific risk be diversified away by investing in both FORWARD AIR 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 FORWARD AIR and Axcelis Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between FORWARD AIR P and Axcelis Technologies, you can compare the effects of market volatilities on FORWARD AIR 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 FORWARD AIR with a short position of Axcelis Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of FORWARD AIR and Axcelis Technologies.
Diversification Opportunities for FORWARD AIR and Axcelis Technologies
-0.35 | Correlation Coefficient |
Very good diversification
The 3 months correlation between FORWARD and Axcelis is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding FORWARD AIR P and Axcelis Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Axcelis Technologies and FORWARD AIR 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 FORWARD AIR P 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 FORWARD AIR i.e., FORWARD AIR and Axcelis Technologies go up and down completely randomly.
Pair Corralation between FORWARD AIR and Axcelis Technologies
Assuming the 90 days horizon FORWARD AIR P is expected to generate 2.13 times more return on investment than Axcelis Technologies. However, FORWARD AIR is 2.13 times more volatile than Axcelis Technologies. It trades about 0.09 of its potential returns per unit of risk. Axcelis Technologies is currently generating about -0.16 per unit of risk. If you would invest 3,100 in FORWARD AIR P on September 3, 2024 and sell it today you would earn a total of 260.00 from holding FORWARD AIR P or generate 8.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
FORWARD AIR P vs. Axcelis Technologies
Performance |
| Timeline |
| FORWARD AIR P |
| Axcelis Technologies |
FORWARD AIR and Axcelis Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FORWARD AIR and Axcelis Technologies
The main advantage of trading using opposite FORWARD AIR and Axcelis Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FORWARD AIR 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.| FORWARD AIR vs. Apple Inc | FORWARD AIR vs. Apple Inc | FORWARD AIR vs. Apple Inc | FORWARD AIR vs. Apple Inc |
| Axcelis Technologies vs. Tower One Wireless | Axcelis Technologies vs. FORWARD AIR P | Axcelis Technologies vs. Corsair Gaming | Axcelis Technologies vs. MTI WIRELESS EDGE |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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