Correlation Between Axcelis Technologies and JD SPORTS
Can any of the company-specific risk be diversified away by investing in both Axcelis Technologies and JD SPORTS 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 JD SPORTS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Axcelis Technologies and JD SPORTS FASH, you can compare the effects of market volatilities on Axcelis Technologies and JD SPORTS 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 JD SPORTS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Axcelis Technologies and JD SPORTS.
Diversification Opportunities for Axcelis Technologies and JD SPORTS
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Axcelis and 9JD is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Axcelis Technologies and JD SPORTS FASH in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JD SPORTS FASH 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 JD SPORTS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JD SPORTS FASH has no effect on the direction of Axcelis Technologies i.e., Axcelis Technologies and JD SPORTS go up and down completely randomly.
Pair Corralation between Axcelis Technologies and JD SPORTS
Assuming the 90 days trading horizon Axcelis Technologies is expected to generate 0.69 times more return on investment than JD SPORTS. However, Axcelis Technologies is 1.45 times less risky than JD SPORTS. It trades about -0.18 of its potential returns per unit of risk. JD SPORTS FASH is currently generating about -0.16 per unit of risk. If you would invest 7,882 in Axcelis Technologies on September 4, 2024 and sell it today you would lose (952.00) from holding Axcelis Technologies or give up 12.08% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 95.45% |
| Values | Daily Returns |
Axcelis Technologies vs. JD SPORTS FASH
Performance |
| Timeline |
| Axcelis Technologies |
| JD SPORTS FASH |
Axcelis Technologies and JD SPORTS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Axcelis Technologies and JD SPORTS
The main advantage of trading using opposite Axcelis Technologies and JD SPORTS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Axcelis Technologies position performs unexpectedly, JD SPORTS 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 JD SPORTS will offset losses from the drop in JD SPORTS's long position.| Axcelis Technologies vs. Apple Inc | Axcelis Technologies vs. Apple Inc | Axcelis Technologies vs. Apple Inc | Axcelis Technologies vs. Apple Inc |
| JD SPORTS vs. ASURE SOFTWARE | JD SPORTS vs. CyberArk Software | JD SPORTS vs. UPDATE SOFTWARE | JD SPORTS vs. Kaiser Aluminum |
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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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