Correlation Between Axcelis Technologies and PT Bank
Can any of the company-specific risk be diversified away by investing in both Axcelis Technologies and PT Bank 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 PT Bank into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Axcelis Technologies and PT Bank Central, you can compare the effects of market volatilities on Axcelis Technologies and PT Bank 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 PT Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Axcelis Technologies and PT Bank.
Diversification Opportunities for Axcelis Technologies and PT Bank
0.22 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Axcelis and BZG2 is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding Axcelis Technologies and PT Bank Central in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PT Bank Central 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 PT Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PT Bank Central has no effect on the direction of Axcelis Technologies i.e., Axcelis Technologies and PT Bank go up and down completely randomly.
Pair Corralation between Axcelis Technologies and PT Bank
Assuming the 90 days trading horizon Axcelis Technologies is expected to under-perform the PT Bank. But the stock apears to be less risky and, when comparing its historical volatility, Axcelis Technologies is 1.41 times less risky than PT Bank. The stock trades about -0.16 of its potential returns per unit of risk. The PT Bank Central is currently generating about -0.07 of returns per unit of risk over similar time horizon. If you would invest 62.00 in PT Bank Central on September 3, 2024 and sell it today you would lose (5.00) from holding PT Bank Central or give up 8.06% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Axcelis Technologies vs. PT Bank Central
Performance |
| Timeline |
| Axcelis Technologies |
| PT Bank Central |
Axcelis Technologies and PT Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Axcelis Technologies and PT Bank
The main advantage of trading using opposite Axcelis Technologies and PT Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Axcelis Technologies position performs unexpectedly, PT Bank 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 PT Bank will offset losses from the drop in PT Bank's long position.| Axcelis Technologies vs. Tower One Wireless | Axcelis Technologies vs. FORWARD AIR P | Axcelis Technologies vs. Corsair Gaming | Axcelis Technologies vs. MTI WIRELESS EDGE |
| PT Bank vs. Vulcan Materials | PT Bank vs. RYU Apparel | PT Bank vs. THORNEY TECHS LTD | PT Bank vs. Hyster Yale Materials Handling |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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