Correlation Between Singapore Telecommunicatio and Axcelis Technologies
Can any of the company-specific risk be diversified away by investing in both Singapore Telecommunicatio 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 Singapore Telecommunicatio and Axcelis Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Singapore Telecommunications Limited and Axcelis Technologies, you can compare the effects of market volatilities on Singapore Telecommunicatio 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 Singapore Telecommunicatio with a short position of Axcelis Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Singapore Telecommunicatio and Axcelis Technologies.
Diversification Opportunities for Singapore Telecommunicatio and Axcelis Technologies
-0.22 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Singapore and Axcelis is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding Singapore Telecommunications L and Axcelis Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Axcelis Technologies and Singapore Telecommunicatio 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 Singapore Telecommunications Limited 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 Singapore Telecommunicatio i.e., Singapore Telecommunicatio and Axcelis Technologies go up and down completely randomly.
Pair Corralation between Singapore Telecommunicatio and Axcelis Technologies
Assuming the 90 days trading horizon Singapore Telecommunicatio is expected to generate 2.17 times less return on investment than Axcelis Technologies. But when comparing it to its historical volatility, Singapore Telecommunications Limited is 1.56 times less risky than Axcelis Technologies. It trades about 0.08 of its potential returns per unit of risk. Axcelis Technologies is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 6,736 in Axcelis Technologies on October 20, 2024 and sell it today you would earn a total of 270.00 from holding Axcelis Technologies or generate 4.01% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Singapore Telecommunications L vs. Axcelis Technologies
Performance |
| Timeline |
| Singapore Telecommunicatio |
| Axcelis Technologies |
Singapore Telecommunicatio and Axcelis Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Singapore Telecommunicatio and Axcelis Technologies
The main advantage of trading using opposite Singapore Telecommunicatio and Axcelis Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Singapore Telecommunicatio 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.| Singapore Telecommunicatio vs. Melco Resorts Entertainment | Singapore Telecommunicatio vs. TYSON FOODS A | Singapore Telecommunicatio vs. ZINC MEDIA GR | Singapore Telecommunicatio vs. LINMON MEDIA LTD |
| Axcelis Technologies vs. COMBA TELECOM SYST | Axcelis Technologies vs. ARISTOCRAT LEISURE | Axcelis Technologies vs. Telecom Argentina SA | Axcelis Technologies vs. Singapore Telecommunications Limited |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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