Correlation Between Axcelis Technologies and Compugroup Medical
Can any of the company-specific risk be diversified away by investing in both Axcelis Technologies and Compugroup Medical 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 Compugroup Medical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Axcelis Technologies and Compugroup Medical SE, you can compare the effects of market volatilities on Axcelis Technologies and Compugroup Medical 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 Compugroup Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Axcelis Technologies and Compugroup Medical.
Diversification Opportunities for Axcelis Technologies and Compugroup Medical
-0.35 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Axcelis and Compugroup is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding Axcelis Technologies and Compugroup Medical SE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Compugroup Medical 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 Compugroup Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Compugroup Medical has no effect on the direction of Axcelis Technologies i.e., Axcelis Technologies and Compugroup Medical go up and down completely randomly.
Pair Corralation between Axcelis Technologies and Compugroup Medical
Assuming the 90 days trading horizon Axcelis Technologies is expected to generate 1.22 times more return on investment than Compugroup Medical. However, Axcelis Technologies is 1.22 times more volatile than Compugroup Medical SE. It trades about 0.01 of its potential returns per unit of risk. Compugroup Medical SE is currently generating about -0.05 per unit of risk. If you would invest 8,060 in Axcelis Technologies on September 3, 2024 and sell it today you would lose (1,008) from holding Axcelis Technologies or give up 12.51% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Axcelis Technologies vs. Compugroup Medical SE
Performance |
| Timeline |
| Axcelis Technologies |
| Compugroup Medical |
Axcelis Technologies and Compugroup Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Axcelis Technologies and Compugroup Medical
The main advantage of trading using opposite Axcelis Technologies and Compugroup Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Axcelis Technologies position performs unexpectedly, Compugroup Medical 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 Compugroup Medical will offset losses from the drop in Compugroup Medical'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 |
| Compugroup Medical vs. ATRESMEDIA | Compugroup Medical vs. Corsair Gaming | Compugroup Medical vs. Hollywood Bowl Group | Compugroup Medical vs. RCS MediaGroup SpA |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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