Correlation Between DXC Technology and Axcelis Technologies
Can any of the company-specific risk be diversified away by investing in both DXC Technology and Axcelis 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 DXC Technology and Axcelis Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between DXC Technology Co and Axcelis Technologies, you can compare the effects of market volatilities on DXC Technology and Axcelis 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 DXC Technology with a short position of Axcelis Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of DXC Technology and Axcelis Technologies.
Diversification Opportunities for DXC Technology and Axcelis Technologies
-0.77 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between DXC and Axcelis is -0.77. Overlapping area represents the amount of risk that can be diversified away by holding DXC Technology Co and Axcelis Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Axcelis Technologies and DXC Technology 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 DXC Technology Co are associated (or correlated) with Axcelis Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Axcelis Technologies has no effect on the direction of DXC Technology i.e., DXC Technology and Axcelis Technologies go up and down completely randomly.
Pair Corralation between DXC Technology and Axcelis Technologies
Assuming the 90 days trading horizon DXC Technology Co is expected to generate 0.92 times more return on investment than Axcelis Technologies. However, DXC Technology Co is 1.08 times less risky than Axcelis Technologies. It trades about 0.06 of its potential returns per unit of risk. Axcelis Technologies is currently generating about -0.1 per unit of risk. If you would invest 1,904 in DXC Technology Co on September 15, 2024 and sell it today you would earn a total of 140.00 from holding DXC Technology Co or generate 7.35% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
DXC Technology Co vs. Axcelis Technologies
Performance |
Timeline |
DXC Technology |
Axcelis Technologies |
DXC Technology and Axcelis Technologies Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with DXC Technology and Axcelis Technologies
The main advantage of trading using opposite DXC Technology and Axcelis Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DXC Technology position performs unexpectedly, Axcelis 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 Axcelis Technologies will offset losses from the drop in Axcelis Technologies' long position.DXC Technology vs. Apple Inc | DXC Technology vs. Apple Inc | DXC Technology vs. Apple Inc | DXC Technology vs. Apple Inc |
Axcelis Technologies vs. Apple Inc | Axcelis Technologies vs. Apple Inc | Axcelis Technologies vs. Apple Inc | Axcelis Technologies 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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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