Correlation Between Axcelis Technologies and ZURICH INSURANCE
Can any of the company-specific risk be diversified away by investing in both Axcelis Technologies and ZURICH INSURANCE 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 ZURICH INSURANCE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Axcelis Technologies and ZURICH INSURANCE GROUP, you can compare the effects of market volatilities on Axcelis Technologies and ZURICH INSURANCE 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 ZURICH INSURANCE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Axcelis Technologies and ZURICH INSURANCE.
Diversification Opportunities for Axcelis Technologies and ZURICH INSURANCE
-0.83 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Axcelis and ZURICH is -0.83. Overlapping area represents the amount of risk that can be diversified away by holding Axcelis Technologies and ZURICH INSURANCE GROUP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ZURICH INSURANCE 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 ZURICH INSURANCE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ZURICH INSURANCE has no effect on the direction of Axcelis Technologies i.e., Axcelis Technologies and ZURICH INSURANCE go up and down completely randomly.
Pair Corralation between Axcelis Technologies and ZURICH INSURANCE
Assuming the 90 days trading horizon Axcelis Technologies is expected to under-perform the ZURICH INSURANCE. In addition to that, Axcelis Technologies is 2.69 times more volatile than ZURICH INSURANCE GROUP. It trades about -0.09 of its total potential returns per unit of risk. ZURICH INSURANCE GROUP is currently generating about 0.23 per unit of volatility. If you would invest 2,740 in ZURICH INSURANCE GROUP on September 13, 2024 and sell it today you would earn a total of 160.00 from holding ZURICH INSURANCE GROUP or generate 5.84% 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. ZURICH INSURANCE GROUP
Performance |
| Timeline |
| Axcelis Technologies |
| ZURICH INSURANCE |
Axcelis Technologies and ZURICH INSURANCE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Axcelis Technologies and ZURICH INSURANCE
The main advantage of trading using opposite Axcelis Technologies and ZURICH INSURANCE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Axcelis Technologies position performs unexpectedly, ZURICH INSURANCE 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 ZURICH INSURANCE will offset losses from the drop in ZURICH INSURANCE'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 |
| ZURICH INSURANCE vs. Apple Inc | ZURICH INSURANCE vs. Apple Inc | ZURICH INSURANCE vs. Apple Inc | ZURICH INSURANCE 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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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