Correlation Between Axcelis Technologies and ORMAT TECHNOLOGIES
Can any of the company-specific risk be diversified away by investing in both Axcelis Technologies and ORMAT TECHNOLOGIES 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 ORMAT TECHNOLOGIES into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Axcelis Technologies and ORMAT TECHNOLOGIES, you can compare the effects of market volatilities on Axcelis Technologies and ORMAT TECHNOLOGIES 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 ORMAT TECHNOLOGIES. Check out your portfolio center. Please also check ongoing floating volatility patterns of Axcelis Technologies and ORMAT TECHNOLOGIES.
Diversification Opportunities for Axcelis Technologies and ORMAT TECHNOLOGIES
-0.83 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Axcelis and ORMAT is -0.83. Overlapping area represents the amount of risk that can be diversified away by holding Axcelis Technologies and ORMAT TECHNOLOGIES in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ORMAT TECHNOLOGIES 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 ORMAT TECHNOLOGIES. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ORMAT TECHNOLOGIES has no effect on the direction of Axcelis Technologies i.e., Axcelis Technologies and ORMAT TECHNOLOGIES go up and down completely randomly.
Pair Corralation between Axcelis Technologies and ORMAT TECHNOLOGIES
Assuming the 90 days trading horizon Axcelis Technologies is expected to under-perform the ORMAT TECHNOLOGIES. In addition to that, Axcelis Technologies is 2.34 times more volatile than ORMAT TECHNOLOGIES. It trades about -0.18 of its total potential returns per unit of risk. ORMAT TECHNOLOGIES is currently generating about 0.2 per unit of volatility. If you would invest 7,308 in ORMAT TECHNOLOGIES on September 4, 2024 and sell it today you would earn a total of 422.00 from holding ORMAT TECHNOLOGIES or generate 5.77% 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. ORMAT TECHNOLOGIES
Performance |
| Timeline |
| Axcelis Technologies |
| ORMAT TECHNOLOGIES |
Axcelis Technologies and ORMAT TECHNOLOGIES Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Axcelis Technologies and ORMAT TECHNOLOGIES
The main advantage of trading using opposite Axcelis Technologies and ORMAT TECHNOLOGIES positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Axcelis Technologies position performs unexpectedly, ORMAT TECHNOLOGIES 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 ORMAT TECHNOLOGIES will offset losses from the drop in ORMAT TECHNOLOGIES's long position.| Axcelis Technologies vs. Apple Inc | Axcelis Technologies vs. Apple Inc | Axcelis Technologies vs. Apple Inc | Axcelis Technologies vs. Apple Inc |
| ORMAT TECHNOLOGIES vs. TOTAL GABON | ORMAT TECHNOLOGIES vs. Walgreens Boots Alliance | ORMAT TECHNOLOGIES vs. Peak Resources Limited |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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