Correlation Between Axcelis Technologies and Santacruz Silver
Can any of the company-specific risk be diversified away by investing in both Axcelis Technologies and Santacruz Silver 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 Axcelis Technologies and Santacruz Silver into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Axcelis Technologies and Santacruz Silver Mining, you can compare the effects of market volatilities on Axcelis Technologies and Santacruz Silver 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 Axcelis Technologies with a short position of Santacruz Silver. Check out your portfolio center. Please also check ongoing floating volatility patterns of Axcelis Technologies and Santacruz Silver.
Diversification Opportunities for Axcelis Technologies and Santacruz Silver
0.64 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Axcelis and Santacruz is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding Axcelis Technologies and Santacruz Silver Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Santacruz Silver Mining and Axcelis Technologies 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 Axcelis Technologies are associated (or correlated) with Santacruz Silver. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Santacruz Silver Mining has no effect on the direction of Axcelis Technologies i.e., Axcelis Technologies and Santacruz Silver go up and down completely randomly.
Pair Corralation between Axcelis Technologies and Santacruz Silver
Assuming the 90 days trading horizon Axcelis Technologies is expected to under-perform the Santacruz Silver. But the stock apears to be less risky and, when comparing its historical volatility, Axcelis Technologies is 2.4 times less risky than Santacruz Silver. The stock trades about -0.14 of its potential returns per unit of risk. The Santacruz Silver Mining is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 23.00 in Santacruz Silver Mining on September 27, 2024 and sell it today you would lose (5.00) from holding Santacruz Silver Mining or give up 21.74% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Axcelis Technologies vs. Santacruz Silver Mining
Performance |
| Timeline |
| Axcelis Technologies |
| Santacruz Silver Mining |
Axcelis Technologies and Santacruz Silver Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Axcelis Technologies and Santacruz Silver
The main advantage of trading using opposite Axcelis Technologies and Santacruz Silver positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Axcelis Technologies position performs unexpectedly, Santacruz Silver 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 Santacruz Silver will offset losses from the drop in Santacruz Silver's long position.| Axcelis Technologies vs. Apple Inc | Axcelis Technologies vs. Apple Inc | Axcelis Technologies vs. Apple Inc | Axcelis Technologies vs. Apple Inc |
| Santacruz Silver vs. ALTAIR RES INC | Santacruz Silver vs. Fair Isaac Corp | Santacruz Silver vs. MYFAIR GOLD P | Santacruz Silver vs. DeVry Education Group |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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