Correlation Between Kaufman Broad and Axcelis Technologies
Can any of the company-specific risk be diversified away by investing in both Kaufman Broad 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 Kaufman Broad and Axcelis Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kaufman Broad SA and Axcelis Technologies, you can compare the effects of market volatilities on Kaufman Broad 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 Kaufman Broad with a short position of Axcelis Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kaufman Broad and Axcelis Technologies.
Diversification Opportunities for Kaufman Broad and Axcelis Technologies
0.45 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Kaufman and Axcelis is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding Kaufman Broad SA and Axcelis Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Axcelis Technologies and Kaufman Broad 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 Kaufman Broad SA 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 Kaufman Broad i.e., Kaufman Broad and Axcelis Technologies go up and down completely randomly.
Pair Corralation between Kaufman Broad and Axcelis Technologies
Assuming the 90 days horizon Kaufman Broad SA is expected to generate 0.59 times more return on investment than Axcelis Technologies. However, Kaufman Broad SA is 1.7 times less risky than Axcelis Technologies. It trades about 0.04 of its potential returns per unit of risk. Axcelis Technologies is currently generating about 0.01 per unit of risk. If you would invest 2,437 in Kaufman Broad SA on September 26, 2024 and sell it today you would earn a total of 733.00 from holding Kaufman Broad SA or generate 30.08% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Kaufman Broad SA vs. Axcelis Technologies
Performance |
Timeline |
Kaufman Broad SA |
Axcelis Technologies |
Kaufman Broad and Axcelis Technologies Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Kaufman Broad and Axcelis Technologies
The main advantage of trading using opposite Kaufman Broad and Axcelis Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kaufman Broad 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.Kaufman Broad vs. British American Tobacco | Kaufman Broad vs. FUYO GENERAL LEASE | Kaufman Broad vs. MOVIE GAMES SA | Kaufman Broad vs. IMPERIAL TOBACCO |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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