Correlation Between Nano Labs and Axcelis Technologies
Can any of the company-specific risk be diversified away by investing in both Nano Labs 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 Nano Labs and Axcelis Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nano Labs and Axcelis Technologies, you can compare the effects of market volatilities on Nano Labs 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 Nano Labs with a short position of Axcelis Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nano Labs and Axcelis Technologies.
Diversification Opportunities for Nano Labs and Axcelis Technologies
-0.2 | Correlation Coefficient |
Good diversification
The 3 months correlation between Nano and Axcelis is -0.2. Overlapping area represents the amount of risk that can be diversified away by holding Nano Labs and Axcelis Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Axcelis Technologies and Nano Labs 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 Nano Labs 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 Nano Labs i.e., Nano Labs and Axcelis Technologies go up and down completely randomly.
Pair Corralation between Nano Labs and Axcelis Technologies
Allowing for the 90-day total investment horizon Nano Labs is expected to generate 4.58 times more return on investment than Axcelis Technologies. However, Nano Labs is 4.58 times more volatile than Axcelis Technologies. It trades about 0.07 of its potential returns per unit of risk. Axcelis Technologies is currently generating about -0.23 per unit of risk. If you would invest 839.00 in Nano Labs on September 24, 2024 and sell it today you would earn a total of 33.00 from holding Nano Labs or generate 3.93% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nano Labs vs. Axcelis Technologies
Performance |
| Timeline |
| Nano Labs |
| Axcelis Technologies |
Nano Labs and Axcelis Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nano Labs and Axcelis Technologies
The main advantage of trading using opposite Nano Labs and Axcelis Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nano Labs 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.| Nano Labs vs. SEALSQ Corp | Nano Labs vs. GSI Technology | Nano Labs vs. ChipMOS Technologies | Nano Labs vs. Wisekey International Holding |
| Axcelis Technologies vs. Diodes Incorporated | Axcelis Technologies vs. Daqo New Energy | Axcelis Technologies vs. MagnaChip Semiconductor | Axcelis Technologies vs. Nano Labs |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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