Correlation Between Grizzly Discoveries and Axcelis Technologies
Can any of the company-specific risk be diversified away by investing in both Grizzly Discoveries 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 Grizzly Discoveries and Axcelis Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Grizzly Discoveries and Axcelis Technologies, you can compare the effects of market volatilities on Grizzly Discoveries 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 Grizzly Discoveries with a short position of Axcelis Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Grizzly Discoveries and Axcelis Technologies.
Diversification Opportunities for Grizzly Discoveries and Axcelis Technologies
0.17 | Correlation Coefficient |
Average diversification
The 3 months correlation between Grizzly and Axcelis is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding Grizzly Discoveries and Axcelis Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Axcelis Technologies and Grizzly Discoveries 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 Grizzly Discoveries 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 Grizzly Discoveries i.e., Grizzly Discoveries and Axcelis Technologies go up and down completely randomly.
Pair Corralation between Grizzly Discoveries and Axcelis Technologies
Assuming the 90 days horizon Grizzly Discoveries is expected to generate 12.75 times more return on investment than Axcelis Technologies. However, Grizzly Discoveries is 12.75 times more volatile than Axcelis Technologies. It trades about 0.03 of its potential returns per unit of risk. Axcelis Technologies is currently generating about -0.18 per unit of risk. If you would invest 0.30 in Grizzly Discoveries on September 4, 2024 and sell it today you would lose (0.25) from holding Grizzly Discoveries or give up 83.33% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Grizzly Discoveries vs. Axcelis Technologies
Performance |
| Timeline |
| Grizzly Discoveries |
| Axcelis Technologies |
Grizzly Discoveries and Axcelis Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Grizzly Discoveries and Axcelis Technologies
The main advantage of trading using opposite Grizzly Discoveries and Axcelis Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Grizzly Discoveries 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.| Grizzly Discoveries vs. Jacquet Metal Service | Grizzly Discoveries vs. Meiko Electronics Co | Grizzly Discoveries vs. Lion One Metals | Grizzly Discoveries vs. LPKF Laser Electronics |
| Axcelis Technologies vs. Apple Inc | Axcelis Technologies vs. Apple Inc | Axcelis Technologies vs. Apple Inc | Axcelis Technologies vs. Apple Inc |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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