Correlation Between TRADEGATE and Axcelis Technologies
Can any of the company-specific risk be diversified away by investing in both TRADEGATE 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 TRADEGATE and Axcelis Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between TRADEGATE and Axcelis Technologies, you can compare the effects of market volatilities on TRADEGATE 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 TRADEGATE with a short position of Axcelis Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of TRADEGATE and Axcelis Technologies.
Diversification Opportunities for TRADEGATE and Axcelis Technologies
-0.36 | Correlation Coefficient |
Very good diversification
The 3 months correlation between TRADEGATE and Axcelis is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding TRADEGATE and Axcelis Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Axcelis Technologies and TRADEGATE 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 TRADEGATE 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 TRADEGATE i.e., TRADEGATE and Axcelis Technologies go up and down completely randomly.
Pair Corralation between TRADEGATE and Axcelis Technologies
Assuming the 90 days trading horizon TRADEGATE is expected to generate 0.08 times more return on investment than Axcelis Technologies. However, TRADEGATE is 12.79 times less risky than Axcelis Technologies. It trades about -0.12 of its potential returns per unit of risk. Axcelis Technologies is currently generating about -0.14 per unit of risk. If you would invest 9,050 in TRADEGATE on September 25, 2024 and sell it today you would lose (50.00) from holding TRADEGATE or give up 0.55% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
TRADEGATE vs. Axcelis Technologies
Performance |
| Timeline |
| TRADEGATE |
| Axcelis Technologies |
TRADEGATE and Axcelis Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with TRADEGATE and Axcelis Technologies
The main advantage of trading using opposite TRADEGATE and Axcelis Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TRADEGATE 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 TRADEGATE 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. Aluminum of | Axcelis Technologies vs. Neinor Homes SA | Axcelis Technologies vs. Jacquet Metal Service | Axcelis Technologies vs. HomeToGo SE |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
Other Complementary Tools
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Bonds Directory Find actively traded corporate debentures issued by US companies |