Correlation Between SIEM OFFSHORE and Axcelis Technologies
Can any of the company-specific risk be diversified away by investing in both SIEM OFFSHORE 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 SIEM OFFSHORE and Axcelis Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SIEM OFFSHORE NEW and Axcelis Technologies, you can compare the effects of market volatilities on SIEM OFFSHORE 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 SIEM OFFSHORE with a short position of Axcelis Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of SIEM OFFSHORE and Axcelis Technologies.
Diversification Opportunities for SIEM OFFSHORE and Axcelis Technologies
0.18 | Correlation Coefficient |
Average diversification
The 3 months correlation between SIEM and Axcelis is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding SIEM OFFSHORE NEW and Axcelis Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Axcelis Technologies and SIEM OFFSHORE 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 SIEM OFFSHORE NEW 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 SIEM OFFSHORE i.e., SIEM OFFSHORE and Axcelis Technologies go up and down completely randomly.
Pair Corralation between SIEM OFFSHORE and Axcelis Technologies
Assuming the 90 days trading horizon SIEM OFFSHORE NEW is expected to generate 0.8 times more return on investment than Axcelis Technologies. However, SIEM OFFSHORE NEW is 1.25 times less risky than Axcelis Technologies. It trades about 0.29 of its potential returns per unit of risk. Axcelis Technologies is currently generating about -0.21 per unit of risk. If you would invest 211.00 in SIEM OFFSHORE NEW on August 29, 2024 and sell it today you would earn a total of 37.00 from holding SIEM OFFSHORE NEW or generate 17.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
SIEM OFFSHORE NEW vs. Axcelis Technologies
Performance |
| Timeline |
| SIEM OFFSHORE NEW |
| Axcelis Technologies |
SIEM OFFSHORE and Axcelis Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SIEM OFFSHORE and Axcelis Technologies
The main advantage of trading using opposite SIEM OFFSHORE and Axcelis Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SIEM OFFSHORE 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.The idea behind SIEM OFFSHORE NEW and Axcelis Technologies pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Axcelis Technologies vs. PKSHA TECHNOLOGY INC | Axcelis Technologies vs. Sunny Optical Technology | Axcelis Technologies vs. Micron Technology | Axcelis Technologies vs. X FAB Silicon Foundries |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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