Correlation Between Axcelis Technologies and Engie SA
Can any of the company-specific risk be diversified away by investing in both Axcelis Technologies and Engie SA 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 Engie SA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Axcelis Technologies and Engie SA, you can compare the effects of market volatilities on Axcelis Technologies and Engie SA 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 Engie SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Axcelis Technologies and Engie SA.
Diversification Opportunities for Axcelis Technologies and Engie SA
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Axcelis and Engie is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Axcelis Technologies and Engie SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Engie SA 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 Engie SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Engie SA has no effect on the direction of Axcelis Technologies i.e., Axcelis Technologies and Engie SA go up and down completely randomly.
Pair Corralation between Axcelis Technologies and Engie SA
Assuming the 90 days trading horizon Axcelis Technologies is expected to generate 2.23 times less return on investment than Engie SA. In addition to that, Axcelis Technologies is 2.6 times more volatile than Engie SA. It trades about 0.01 of its total potential returns per unit of risk. Engie SA is currently generating about 0.04 per unit of volatility. If you would invest 1,196 in Engie SA on September 3, 2024 and sell it today you would earn a total of 304.00 from holding Engie SA or generate 25.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Axcelis Technologies vs. Engie SA
Performance |
| Timeline |
| Axcelis Technologies |
| Engie SA |
Axcelis Technologies and Engie SA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Axcelis Technologies and Engie SA
The main advantage of trading using opposite Axcelis Technologies and Engie SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Axcelis Technologies position performs unexpectedly, Engie SA 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 Engie SA will offset losses from the drop in Engie SA'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 |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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