Correlation Between HEALTHCARE REAL and Axcelis Technologies
Can any of the company-specific risk be diversified away by investing in both HEALTHCARE REAL 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 HEALTHCARE REAL and Axcelis Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between HEALTHCARE REAL A and Axcelis Technologies, you can compare the effects of market volatilities on HEALTHCARE REAL 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 HEALTHCARE REAL with a short position of Axcelis Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of HEALTHCARE REAL and Axcelis Technologies.
Diversification Opportunities for HEALTHCARE REAL and Axcelis Technologies
-0.7 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between HEALTHCARE and Axcelis is -0.7. Overlapping area represents the amount of risk that can be diversified away by holding HEALTHCARE REAL A and Axcelis Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Axcelis Technologies and HEALTHCARE REAL 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 HEALTHCARE REAL A 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 HEALTHCARE REAL i.e., HEALTHCARE REAL and Axcelis Technologies go up and down completely randomly.
Pair Corralation between HEALTHCARE REAL and Axcelis Technologies
Assuming the 90 days horizon HEALTHCARE REAL A is expected to generate 0.61 times more return on investment than Axcelis Technologies. However, HEALTHCARE REAL A is 1.64 times less risky than Axcelis Technologies. It trades about 0.02 of its potential returns per unit of risk. Axcelis Technologies is currently generating about -0.12 per unit of risk. If you would invest 1,639 in HEALTHCARE REAL A on September 12, 2024 and sell it today you would earn a total of 21.00 from holding HEALTHCARE REAL A or generate 1.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
HEALTHCARE REAL A vs. Axcelis Technologies
Performance |
| Timeline |
| HEALTHCARE REAL A |
| Axcelis Technologies |
HEALTHCARE REAL and Axcelis Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HEALTHCARE REAL and Axcelis Technologies
The main advantage of trading using opposite HEALTHCARE REAL and Axcelis Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HEALTHCARE REAL 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.| HEALTHCARE REAL vs. Apple Inc | HEALTHCARE REAL vs. Apple Inc | HEALTHCARE REAL vs. Apple Inc | HEALTHCARE REAL vs. Apple Inc |
| 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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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