Correlation Between Axcelis Technologies and Chesapeake Utilities
Can any of the company-specific risk be diversified away by investing in both Axcelis Technologies and Chesapeake Utilities 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 Chesapeake Utilities into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Axcelis Technologies and Chesapeake Utilities, you can compare the effects of market volatilities on Axcelis Technologies and Chesapeake Utilities 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 Chesapeake Utilities. Check out your portfolio center. Please also check ongoing floating volatility patterns of Axcelis Technologies and Chesapeake Utilities.
Diversification Opportunities for Axcelis Technologies and Chesapeake Utilities
-0.85 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Axcelis and Chesapeake is -0.85. Overlapping area represents the amount of risk that can be diversified away by holding Axcelis Technologies and Chesapeake Utilities in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chesapeake Utilities 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 Chesapeake Utilities. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chesapeake Utilities has no effect on the direction of Axcelis Technologies i.e., Axcelis Technologies and Chesapeake Utilities go up and down completely randomly.
Pair Corralation between Axcelis Technologies and Chesapeake Utilities
Assuming the 90 days trading horizon Axcelis Technologies is expected to under-perform the Chesapeake Utilities. In addition to that, Axcelis Technologies is 1.7 times more volatile than Chesapeake Utilities. It trades about -0.22 of its total potential returns per unit of risk. Chesapeake Utilities is currently generating about 0.27 per unit of volatility. If you would invest 11,100 in Chesapeake Utilities on August 30, 2024 and sell it today you would earn a total of 1,300 from holding Chesapeake Utilities or generate 11.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Axcelis Technologies vs. Chesapeake Utilities
Performance |
| Timeline |
| Axcelis Technologies |
| Chesapeake Utilities |
Axcelis Technologies and Chesapeake Utilities Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Axcelis Technologies and Chesapeake Utilities
The main advantage of trading using opposite Axcelis Technologies and Chesapeake Utilities positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Axcelis Technologies position performs unexpectedly, Chesapeake Utilities 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 Chesapeake Utilities will offset losses from the drop in Chesapeake Utilities' long position.| Axcelis Technologies vs. SCANSOURCE | Axcelis Technologies vs. IMPERIAL TOBACCO | Axcelis Technologies vs. Public Storage | Axcelis Technologies vs. Datadog |
| Chesapeake Utilities vs. Caseys General Stores | Chesapeake Utilities vs. MARKET VECTR RETAIL | Chesapeake Utilities vs. Fast Retailing Co | Chesapeake Utilities vs. SINGAPORE AIRLINES |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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