Correlation Between Axcelis Technologies and Guangzhou Baiyunshan
Can any of the company-specific risk be diversified away by investing in both Axcelis Technologies and Guangzhou Baiyunshan 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 Guangzhou Baiyunshan into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Axcelis Technologies and Guangzhou Baiyunshan Pharmaceutical, you can compare the effects of market volatilities on Axcelis Technologies and Guangzhou Baiyunshan 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 Guangzhou Baiyunshan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Axcelis Technologies and Guangzhou Baiyunshan.
Diversification Opportunities for Axcelis Technologies and Guangzhou Baiyunshan
-0.64 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Axcelis and Guangzhou is -0.64. Overlapping area represents the amount of risk that can be diversified away by holding Axcelis Technologies and Guangzhou Baiyunshan Pharmaceu in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangzhou Baiyunshan 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 Guangzhou Baiyunshan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangzhou Baiyunshan has no effect on the direction of Axcelis Technologies i.e., Axcelis Technologies and Guangzhou Baiyunshan go up and down completely randomly.
Pair Corralation between Axcelis Technologies and Guangzhou Baiyunshan
Assuming the 90 days trading horizon Axcelis Technologies is expected to under-perform the Guangzhou Baiyunshan. In addition to that, Axcelis Technologies is 1.57 times more volatile than Guangzhou Baiyunshan Pharmaceutical. It trades about -0.04 of its total potential returns per unit of risk. Guangzhou Baiyunshan Pharmaceutical is currently generating about 0.01 per unit of volatility. If you would invest 216.00 in Guangzhou Baiyunshan Pharmaceutical on September 14, 2024 and sell it today you would earn a total of 0.00 from holding Guangzhou Baiyunshan Pharmaceutical or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Axcelis Technologies vs. Guangzhou Baiyunshan Pharmaceu
Performance |
| Timeline |
| Axcelis Technologies |
| Guangzhou Baiyunshan |
Axcelis Technologies and Guangzhou Baiyunshan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Axcelis Technologies and Guangzhou Baiyunshan
The main advantage of trading using opposite Axcelis Technologies and Guangzhou Baiyunshan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Axcelis Technologies position performs unexpectedly, Guangzhou Baiyunshan 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 Guangzhou Baiyunshan will offset losses from the drop in Guangzhou Baiyunshan's long position.| Axcelis Technologies vs. UET United Electronic | Axcelis Technologies vs. Amkor Technology | Axcelis Technologies vs. DXC Technology Co | Axcelis Technologies vs. X FAB Silicon Foundries |
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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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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