Correlation Between Axcelis Technologies and MEDICAL FACILITIES
Can any of the company-specific risk be diversified away by investing in both Axcelis Technologies and MEDICAL FACILITIES 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 MEDICAL FACILITIES into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Axcelis Technologies and MEDICAL FACILITIES NEW, you can compare the effects of market volatilities on Axcelis Technologies and MEDICAL FACILITIES 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 MEDICAL FACILITIES. Check out your portfolio center. Please also check ongoing floating volatility patterns of Axcelis Technologies and MEDICAL FACILITIES.
Diversification Opportunities for Axcelis Technologies and MEDICAL FACILITIES
-0.9 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Axcelis and MEDICAL is -0.9. Overlapping area represents the amount of risk that can be diversified away by holding Axcelis Technologies and MEDICAL FACILITIES NEW in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MEDICAL FACILITIES NEW 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 MEDICAL FACILITIES. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MEDICAL FACILITIES NEW has no effect on the direction of Axcelis Technologies i.e., Axcelis Technologies and MEDICAL FACILITIES go up and down completely randomly.
Pair Corralation between Axcelis Technologies and MEDICAL FACILITIES
Assuming the 90 days trading horizon Axcelis Technologies is expected to generate 8.4 times less return on investment than MEDICAL FACILITIES. In addition to that, Axcelis Technologies is 1.26 times more volatile than MEDICAL FACILITIES NEW. It trades about 0.01 of its total potential returns per unit of risk. MEDICAL FACILITIES NEW is currently generating about 0.08 per unit of volatility. If you would invest 487.00 in MEDICAL FACILITIES NEW on September 4, 2024 and sell it today you would earn a total of 603.00 from holding MEDICAL FACILITIES NEW or generate 123.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 99.8% |
| Values | Daily Returns |
Axcelis Technologies vs. MEDICAL FACILITIES NEW
Performance |
| Timeline |
| Axcelis Technologies |
| MEDICAL FACILITIES NEW |
Axcelis Technologies and MEDICAL FACILITIES Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Axcelis Technologies and MEDICAL FACILITIES
The main advantage of trading using opposite Axcelis Technologies and MEDICAL FACILITIES positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Axcelis Technologies position performs unexpectedly, MEDICAL FACILITIES 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 MEDICAL FACILITIES will offset losses from the drop in MEDICAL FACILITIES's long position.| Axcelis Technologies vs. Apple Inc | Axcelis Technologies vs. Apple Inc | Axcelis Technologies vs. Apple Inc | Axcelis Technologies vs. Apple Inc |
| MEDICAL FACILITIES vs. Superior Plus Corp | MEDICAL FACILITIES vs. NMI Holdings | MEDICAL FACILITIES vs. Origin Agritech | MEDICAL FACILITIES vs. SIVERS SEMICONDUCTORS AB |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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