Correlation Between Axcelis Technologies and METTLER TOLEDO
Can any of the company-specific risk be diversified away by investing in both Axcelis Technologies and METTLER TOLEDO 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 METTLER TOLEDO into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Axcelis Technologies and METTLER TOLEDO INTL, you can compare the effects of market volatilities on Axcelis Technologies and METTLER TOLEDO 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 METTLER TOLEDO. Check out your portfolio center. Please also check ongoing floating volatility patterns of Axcelis Technologies and METTLER TOLEDO.
Diversification Opportunities for Axcelis Technologies and METTLER TOLEDO
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Axcelis and METTLER is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Axcelis Technologies and METTLER TOLEDO INTL in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on METTLER TOLEDO 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 METTLER TOLEDO. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of METTLER TOLEDO INTL has no effect on the direction of Axcelis Technologies i.e., Axcelis Technologies and METTLER TOLEDO go up and down completely randomly.
Pair Corralation between Axcelis Technologies and METTLER TOLEDO
Assuming the 90 days trading horizon Axcelis Technologies is expected to under-perform the METTLER TOLEDO. In addition to that, Axcelis Technologies is 1.58 times more volatile than METTLER TOLEDO INTL. It trades about -0.05 of its total potential returns per unit of risk. METTLER TOLEDO INTL is currently generating about 0.01 per unit of volatility. If you would invest 116,650 in METTLER TOLEDO INTL on September 3, 2024 and sell it today you would earn a total of 1,000.00 from holding METTLER TOLEDO INTL or generate 0.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Axcelis Technologies vs. METTLER TOLEDO INTL
Performance |
| Timeline |
| Axcelis Technologies |
| METTLER TOLEDO INTL |
Axcelis Technologies and METTLER TOLEDO Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Axcelis Technologies and METTLER TOLEDO
The main advantage of trading using opposite Axcelis Technologies and METTLER TOLEDO positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Axcelis Technologies position performs unexpectedly, METTLER TOLEDO 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 METTLER TOLEDO will offset losses from the drop in METTLER TOLEDO'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 |
| METTLER TOLEDO vs. AAC TECHNOLOGHLDGADR | METTLER TOLEDO vs. Richardson Electronics | METTLER TOLEDO vs. Meiko Electronics Co | METTLER TOLEDO vs. Axcelis Technologies |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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