Correlation Between Axcelis Technologies and DAIRY FARM
Can any of the company-specific risk be diversified away by investing in both Axcelis Technologies and DAIRY FARM 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 DAIRY FARM into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Axcelis Technologies and DAIRY FARM INTL, you can compare the effects of market volatilities on Axcelis Technologies and DAIRY FARM 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 DAIRY FARM. Check out your portfolio center. Please also check ongoing floating volatility patterns of Axcelis Technologies and DAIRY FARM.
Diversification Opportunities for Axcelis Technologies and DAIRY FARM
-0.86 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Axcelis and DAIRY is -0.86. Overlapping area represents the amount of risk that can be diversified away by holding Axcelis Technologies and DAIRY FARM INTL in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DAIRY FARM INTL 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 DAIRY FARM. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DAIRY FARM INTL has no effect on the direction of Axcelis Technologies i.e., Axcelis Technologies and DAIRY FARM go up and down completely randomly.
Pair Corralation between Axcelis Technologies and DAIRY FARM
Assuming the 90 days trading horizon Axcelis Technologies is expected to generate 1.44 times more return on investment than DAIRY FARM. However, Axcelis Technologies is 1.44 times more volatile than DAIRY FARM INTL. It trades about 0.01 of its potential returns per unit of risk. DAIRY FARM INTL is currently generating about 0.0 per unit of risk. If you would invest 7,296 in Axcelis Technologies on September 24, 2024 and sell it today you would lose (768.00) from holding Axcelis Technologies or give up 10.53% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Axcelis Technologies vs. DAIRY FARM INTL
Performance |
| Timeline |
| Axcelis Technologies |
| DAIRY FARM INTL |
Axcelis Technologies and DAIRY FARM Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Axcelis Technologies and DAIRY FARM
The main advantage of trading using opposite Axcelis Technologies and DAIRY FARM positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Axcelis Technologies position performs unexpectedly, DAIRY FARM 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 DAIRY FARM will offset losses from the drop in DAIRY FARM's long position.| Axcelis Technologies vs. Apple Inc | Axcelis Technologies vs. Apple Inc | Axcelis Technologies vs. Apple Inc | Axcelis Technologies vs. Apple Inc |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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